 The new Land Rover vehicle would be small and light |
Jaguar Land Rover is to receive a government grant of up to �27m to help develop a new Land Rover vehicle. Land Rover, which is owned by India's Tata Motors, said the car would be the smallest, lightest and most efficient it has produced. The announcement came as motor industry representatives met in London to discuss a �2.3bn support package. Car manufacturers and industry groups welcomed the move but said that more could be done. The money Land Rover will receive is from a separate government scheme and was applied for many months ago. The new model would be made at the company's Halewood plant in Merseyside. The project will cost �400m and a final decision on whether to proceed with production is due later this year. "The project would secure production and employment at the Halewood facility and maintain the design capability for Jaguar Land Rover in the UK, " said Business Secretary Lord Mandelson. The grant is subject to approval from the European Commission. Funds awaited Prime Minister Gordon Brown told MPs that car manufacturers and other businesses would get more help from banks to see them through the recession.  | UK AUTOMOTIVE ASSISTANCE PROGRAMME �2.3 billion scheme to offering loans and loan guarantees Manufacturers and suppliers turnover of more than �25m are eligible Funded by the EU (�1.3bn) and UK government (�1bn) |
"At the car summit today the minister for business is explaining the �2.3bn of support that is available for the car industry," he added. However, carmakers and suppliers have yet to receive any funds from the Automotive Assistance Programme, which was announced in January. The Department for Business, Enterprise and Regulatory Reform said that about 30 car manufacturers and suppliers had made an initial approach for support, but full applications had yet to be made. The support, funded by the government and the European Commission, is linked to helping firms become greener, more innovative and more productive. "The Government has put the scheme in place and has now clearly set out the criteria against which applications will be judged. Now it's up to companies to come forward with their bids," DBERR said. Finance vital David Frost, director general of the British Chambers of Commerce, said that it was vital that the finance now available actually reaches businesses working in the automotive supply chain. "The vehicle industry will be central to driving our economy out of recession and employs large numbers of highly skilled individuals producing efficient cars for the global market of the future," he said. Tom Purves, chief executive of Rolls Royce Motor Cars, said government support was helpful but it was difficult to know whether it would be sufficient. "When you have the world market down by 30% or 40%, that is a tsunami so to speak. You have to make adjustments," he said. Mr Frost urged the government to offer greater help for the car industry. He said that car owners should be offered incentives to scrap old cars and buy new ones. A similar scheme in Germany boosted car sales by 22% in February. "There has been much talk about helping the industry but we now need to see action," he said.
| 
One-Minute World News 
E-mail this to a friend 
Printable version 
We may also need further measures, not least the scrap and build policy which exists in Germany
BBC News
Bookmark with:
What are these?