The GBP2.3bn Government Car Loan
Published / Last Updated on 27/01/2009
The £2.3bn Government Car Loan
Newly appointed business secretary Peter Mandelson yesterday announced a support package of up to £2.3bn for the UK car industry.
The support package is designed to offer support for development of low carbon emission vehicles and is made up of a Government Guarantee Scheme for £1.3bn of loans from European Investment Bank (EIB) as well as further £1bn of non EIB loans.
There has been widespread criticism of the scheme with some saying that it is a ‘bailout’ of the UK car industry, vehemently denied by Government, suggesting that UK car productivity is higher than that of Sweden or France. In addition, many are asking 'why is the initiative only for ‘green cars’ and what about the rest of the industry?'.
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