In recent weeks the UK car industry has received a number of financial packages which are aimed at trying to support the sector in the coming years. Private and public sector money could amount to 2.6 billion over five years which will safeguard jobs and also create new roles in the car industry.
The government has already implemented projects to try and support car manufacturing in the UK, with the 400 million vehicle scrappage scheme helping out. Car owners were able to trade in their old car for a new model and get 2,000 knocked off the asking price for a limited time.
The scheme was a huge success and got a mention in yesterday’s Budget as one of the most positive projects the government has implemented. Chancellor Alistair Darling also mentioned the government’s involvement in persuading Nissan to develop its first electric car at its Sunderland site.
There was some concern that once the scrappage scheme ended the industry would suffer a slump, but the new plans could negate that.
Nissan is again helping out and the Guardian reported that the Japanese car manufacturer is spending 420 million on building new zero-emission electric vehicles at its north-east plant.
Around 50,000 Nissan Leafs will have rolled off the production line each year by 2013 and it is set to be the first affordable, mass-produced electric car in the world. The government is backing the project by investing more than 20 million in the scheme and it is also getting 197.3 million in funding from the European Investment Bank.
American car giant Ford is also bolstering the UK car industry with a 1.5 billion investment into developing research at its Essex facility.
The government will then make 380 million available to Ford in the form of loans from its Automotive Assistance programme.
Another automotive company which has benefited from government support is Vauxhall, with a 270 million loan.
It is encouraging to see so many foreign manufacturers investing in the UK and hopefully that will bolster the car manufacturing industry.