Cable says motor industry can not rely on future Government funding but confirms support for Nissan, Ford
Tue 29 June 2010
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The Business Secretary Vince Cable says that the motor industry can no longer rely on support from Government to develop new low carbon products, such as that offered by the last Labour administration. The Coalition Government has, however, recently confirmed it will honour a £20m grant to support Nissan's EV production in Sunderland, a £360m loan guarantee for a Ford investment at Bridgend and a £270m offer to General Motors.
Speaking at the launch of the Toyota Auris Hybrid at Burnaston, Mr Cable said that in view of the current financial situation the Government will have to look very carefully at future requests for support from the industry.
Reporting on Mr Cable's speech, the Daily Mail reported that the last Government's plans to provide a £5,000 incentive to encourage the purchase of electric and plug-in hybrid cars may be scrapped.
The Prime Minister confirmed earlier in the month that the £20m grant to support Nissan's Sunderland production of the Leaf electric vehicle and the lithium-ion batteries that power it will go ahead.
Ford is reported to have committed itself to a £1.5bn investment in low-carbon vehicle manufacturing in the UK, in a move safeguarding the future of its flagship Bridgend car engine plant. The company said it is now committed to the production of a new generation of low carbon cars and vans following confirmation that the Government will provide a loan guarantee of £360m, as had been promised by Lord Mandelson in the previous Labour Government.
In related news, the North East will additionally benefit from grants worth £7.3 million from the Department of Energy and Climate Change (DECC) and One North East awarded to the Biofuel technology developer INEOS Bio to help construct an advanced waste-to-bioethanol plant in the Tees Valley.
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