F&I Management & Training

The European Investment Bank is expected to approve significant funding for two car makers in Britain, Jaguar Land Rover and Nissan, later. Jaguar Land Rover has applied for around £270m to invest in research and technologies to develop more environmentally friendly cars. Nissan and its sister plant in Spain are seeking around £360m to produce more fuel efficient, cleaner engines. The moves come as the car industry has been hit globally by a slump in sales. When it is distributed, this funding is set to be the first money provided to any car maker in the UK since the financial crisis began. Under EIB rules, any loan requires that car makers must invest in new technology to lower emissions during vehicle production and driving. The EIB loans are expected to require some form of guarantee from the UK government, before any money is paid. The board of the EIB - the lending arm of the European Union - is debating the topic at a meeting in Luxembourg. Slowing industry Figures released on Monday illustrated the gloomy state of the sector. UK car sales dropped 30.5% in March, compared with the same month a year earlier, according to the Society of Motor Manufacturers and Traders (SMMT). The industry argues that help is needed immediately for car makers to ensure they can survive the recession. Business Secretary Lord Mandelson has set aside £2.3bn in support for the car industry, mostly in the form of loan guarantees as well as direct aid to car makers.

DATED: 07.04.09

FEED: AW