Car Industry Seeking Commercial Loans, Not State Aid

Fri, 23 Jan 2009

Britain's car industry chiefs are set to hold talks with the Government over the possibility of a much-needed financial boost for the sector.

According to the head of Jaguar Land Rover David Smith, car firm bosses are requesting help with credit via commercial loans or Government loan guarantees rather than state aid.

Smith said: "The whole industry will be meeting with the Government again next week. We're very clear about what our requests are and we'll see what response we get at that time."

"We don't want Government money. What we actually want is for the Government to help us get funding flowing back into the industry again, either through direct commercial loans or the Government may have to provide loan guarantees ."

He added that both car manufacturers and union groups are keen to avoid any further job cuts. "Clearly we don't want to lose skilled workers at this time; we need them for the future," Smith continued.

Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders (SMMT) said car makers need more support from the Government after new figures from the organisation revealed car production was down by nearly 50 per cent last month and 5.7 per cent for the whole of 2008.

"UK vehicle production figures for 2008 demonstrate both the strength of the sector and the very dramatic fall in demand in the last quarter," he added.
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