London, England – The British government has announced measures that will free up lending of more than £2 billion for the automotive industry, including funding for environmentally friendly technology.
The government said that the automotive industry employs nearly one million people, from manufacturing to retailing, and contributes £10 billion in added value to the economy.
Among the measures announced are garantees to unlock loans of up to £1.3 billion European Investment Bank (EIB) guarantees for lower carbon initiatives; loans or loan guarantees to support up to £1 billion for non-EIB-backed lower carbon projects; increased funding for employee training; and improved access for the financial arms of auto manufacturers.
“Britain needs an economy with less financial engineering and more real engineering,” said Business Secretary Peter Mandelson. “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. This is the route to securing jobs for the long term as we build a more balanced economy for Britain’s future.”
The government is committed to ensuring that anything backed by the measures will offer value for money to the taxpayer, enable a “green” economic recovery, deliver significant innovation in processes or technologies for the long term, and support jobs and skills in Britain.