Tuesday, January 27, 2009
Mandelson outlines aid for UK car industry
Business Secretary Lord Mandelson has outlined a package of support for the UK’s car industry which includes guaranteed loans of up to £2.3 billion for car manufacturers and suppliers.
Speaking to the House of Lords this afternoon he announced the two cornerstones to the package: £1.3 billion is from the European Investment Bank and grants of up to a £1bn to fund "worthwhile investments".
Applications from carmakers and suppliers for funds would be reviewed on a case by case basis and there was “no blank cheque on offer”.
Mandelson maintained that the UK car industry was "not a lame duck" and "the package is not a bailout".
He wants the funds to be used to fuel research and development of cleaner, low carbon vehicles, including electric and hybrid technology.
Mandelson also said spending on the Train to Gain skills training for automotive employees would be boosted to £100m from its current £65m, if there was demand from the industry.
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said: “This is an important announcement that recognises the strategic contribution of the motor industry and follows action in other EU member states, the US and Japan.
“The UK motor industry is productive and globally competitive with a long-term future at the heart of the low carbon agenda. We look forward to discussing the substance of the announcement at our meeting with Lord Mandelson tomorrow.”
Why is the automotive sector important to the UK economy?
• 27 car and CV manufacturers operating in the UK• 1.75m cars and commercial vehicles produced each year• £51bn turnover• £9.5 billion value added• Over 800,000 UK jobs• UK automotive manufacturing supplies over 100 markets worldwide offering some resilience to the UK issues• New cars emit less CO2 than older models – the average new car CO2 emissions have fallen 13% in the last decade.
DATED: 27.01.09
FEED: AM
Speaking to the House of Lords this afternoon he announced the two cornerstones to the package: £1.3 billion is from the European Investment Bank and grants of up to a £1bn to fund "worthwhile investments".
Applications from carmakers and suppliers for funds would be reviewed on a case by case basis and there was “no blank cheque on offer”.
Mandelson maintained that the UK car industry was "not a lame duck" and "the package is not a bailout".
He wants the funds to be used to fuel research and development of cleaner, low carbon vehicles, including electric and hybrid technology.
Mandelson also said spending on the Train to Gain skills training for automotive employees would be boosted to £100m from its current £65m, if there was demand from the industry.
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said: “This is an important announcement that recognises the strategic contribution of the motor industry and follows action in other EU member states, the US and Japan.
“The UK motor industry is productive and globally competitive with a long-term future at the heart of the low carbon agenda. We look forward to discussing the substance of the announcement at our meeting with Lord Mandelson tomorrow.”
Why is the automotive sector important to the UK economy?
• 27 car and CV manufacturers operating in the UK• 1.75m cars and commercial vehicles produced each year• £51bn turnover• £9.5 billion value added• Over 800,000 UK jobs• UK automotive manufacturing supplies over 100 markets worldwide offering some resilience to the UK issues• New cars emit less CO2 than older models – the average new car CO2 emissions have fallen 13% in the last decade.
DATED: 27.01.09
FEED: AM
