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Eco-friendly plans boost car giants
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The motor industry has been given a double boost with news of huge investments by two of the UK's biggest carmakers, safeguarding thousands of jobs.
Ford and Nissan will both receive Government support towards almost £2 billion investment to develop new environmentally friendly engines and a new electric car.
Business Secretary Lord Mandelson announced that the Government had agreed to back Ford's proposed £1.5 billion investment over five years for development of a new generation of environmentally friendly engines and vehicle technologies.
The Government will provide £360 million in loan guarantees towards six projects through its Automotive Assistance Programme, backing a proposed loan of £450 million which is being considered by the European Investment Bank.
Ford's plans will safeguard around 2,800 skilled jobs in the UK at its research and development centre at Dunton in Essex as well as its manufacturing plants in Dagenham, Essex, Southampton and Bridgend in South Wales.
It was also announced that Nissan will produce its electric car, the Leaf, at its plant in Sunderland.
Lord Mandelson said the Government is to commit £20.7 million under the Grant for Business Investment scheme for both the production of the car and a new battery plant at Sunderland.
This will support total investment of more than £420 million by Nissan in its UK operations.
Nissan has plans to make up to 50,000 vehicles and 60,000 batteries a year which will help to safeguard and create over 550 skilled jobs at the Sunderland plant.
Lord Mandelson said: "This investment is a fantastic vote of confidence in the Sunderland plant and its excellent workforce. The automotive sector is of key importance to the UK. It supports R&D, technological innovation, skills and a supply chain that's a mainstay of the wider manufacturing sector.
Reader views (2)
Totally agree with Trader Jim, although this is still good news. When are we going to start focusing on turning our economy into a highly skilled export led economy as opposed to consumption and import led. We need to invest now and Germany is a good model to copy. Time to start investing in vocational education in a massive way.
- David, London, 18/03/2010 18:55
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But that's only to sell to us. Their Nissan factory in Japan will sell to the rest of the world. The engines and components will be made in Japan and shipped over here. Britain will be just an "assembly island" for overseas car manufacturers. Like yesterdays announcement about Black Cabs being made abroad. When will we wake up. If its made in Britain by British owned businesses the money stays in Britain. If its made by foreign owners the profit has to be converted into Yen or Euros etc and sent back to head office. This is why the pound is so low. Its all the daily currency deals as the pound is converted as the money leaves the country.
- Trader Jim, Used Car Lot, 18/03/2010 03:13
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