Support for the automotive industry

The government took action to secure more jobs for the long term today, by helping automotive companies to become greener, more innovative and more productive.

Announcing the measures, Peter Mandelson said:

“Britain needs an economy with less financial engineering and more real engineering. The car industry can and should be a vibrant part of that future. The steps we are taking today will help companies speed their way to becoming greener, more innovative and more productive.”

The elements of support that have been announced include:

– Guarantees to unlock loans of up to £1.3 billion for investment in lower carbon initiatives.

– New loans to support up to £1 billion of lending for lower carbon initiatives for projects not already covered by the European Investment Bank.

– Increased funding, from £65 million to £100 million, for training of employees under ‘Train to Gain’.

The automotive industry employs nearly one million people from manufacturing to retailing and contributes £10 billion to the economy. It’s also a major contributor to research and development, and supports a supply chain for the wider manufacturing industry.

The government’s new scheme is designed to help ensure that major new low-carbon investment projects in the automotive sector are not abandoned or shipped abroad as a result of the downturn.

Unite’s General Secretary, Derek Simpson, lets us know his views on the plans here.

Let us know what you think…

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