Mandelson announces £2bn support package for a lower carbon motor industry
Wed 28 January 2009
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Lord Mandelson, announcing a rescue package worth over £2bn to support Britain's beleaguered car industry, has linked the support to the development of greener technology. Mr Mandelson said: "The automotive industry knows that it must change to succeed in this new world. It has to be cleaner and greener."
Lord Mandelson said that the world's car industry is at a turning point. He said that the industry in Britain: "needs to be at the leading edge of the development of low carbon vehicles and green manufacturing. This offers a major business opportunity for us. But this greening of the industry needs investment in plant, research and development."
The support package includes the unlocking of loans of up to £1.3 billion from the European Investment Bank. It also includes "guarantees to support up to a further £1 billion of lending, or loans where appropriate, to cover worthwhile investments not eligible for EIB support or which will bring special value to Britain".
Lord Mandelson said that applications for support will be assessed by the Government on a case-by-case basis.
According to ENDS, the EU Industry Commissioner, Gunter Verheugen, has also hinted at a speech given in Paris that the motor industry could receive more financial aid for developing greener cars.
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