UK given the green light for state help to Automotive Industry
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Issued 27 Feb 2009
The UK has been given the go ahead by the European Commission
(EC) to offer state help for the automotive industry under the
Automotive Assistance Programme.
The approval by the EC enables the government to support up to
£1 billion of loans and loan guarantees as well as loan guarantees
through the European Investment Bank (EIB) enabling funding of up to
£1.3 billion.
Business minister Ian Pearson said: "We are grateful to the
Commission for its swift response and approval of our state aid
application. We welcome applications for the Automotive Assistance
Programme that's now up and running just one month after announcing our
support package for the automotive industry.
"We are committed to helping the car industry bridge to the
low carbon future. Our package will support both manufacturers and
larger automotive suppliers in delivering the new investment that will
be vital in ensuring the industry comes out of the current downturn
with the skills and technology needed to be competitive in the global
automotive market."
BERR will be holding a seminar in the next couple of weeks to
bring together industry, banks and the relevant trade bodies to make
sure that the Automotive Assistance Programme application process runs
as smoothly and effectively as possible.
Notes to editors:
1. The Government is now able to move forward to implement the
automotive industry support package announced by Lord Mandelson on 27
January 2008 aimed at freeing up lending of £2.3 bn for the automotive
industry. The Commission's decision to approve the UK's state aid
proposals enables the Government to provide guarantees to unlock loans
of up to £1.3bn from the European Investment Bank for investment in
lower carbon initiatives, and also to provide guarantees to support up
to £1bn of lending for lower carbon initiatives for non-EIB backed
projects. Where appropriate, occasionally direct loans may be
considered. The scheme will be administered by BERR and the Department
will be publishing guidance and application criteria for companies
shortly.
2. Companies can register an interest by emailing BERR at
berr.auto@berr.gsi.gov.uk.
About the Author
© Crown Copyright. Material taken
from the BERR- Department for Business, Enterprise and Regulatory
Reform replacing DTI - Department for Trade and Industry. Reproduced
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