UK Motor Industry Seeks Financial Aid

Wed, 19 Nov 2008

Two major motor trade organisations have made a joint appeal to the Government to allocate financial support for UK car industry - one of the most badly hit by the economic downturn and dwindling market support .

The Retail Motor Industry Federation (RMIF) and the Society of Motor Manufacturers and Traders (SMMT) have written a joint letter to Chancellor of the Exchequer Alistair Darling and Business Secretary Lord Mandelson calling for the Government to enact a range of measures to help stimulate the troubled motor sector.

Both organisations argue that car manufacturers and suppliers should have access to the same government-backed loan arrangements as Britain’s banks to help them stay afloat.

The letter also proposes a range of legislative changes, including plans to scrap proposed CO2-based increases in vehicle excise duty and increasing capital allowances for business and fleet buyers, particularly for buyers of commercial vehicles .

The joint RMIF and SMMT proposals are backed by many of Britain’s major car manufacturers, including Jaguar Land Rover.

RMIF chairman Paul Williams said: "It is vital that the motor industry present a united front at this time.

"These measures and others, jointly presented by the two industry trade associations, would go some way to helping the revival of consumer confidence in our sector."

"We urge the Chancellor to undertake these measures, and to discuss further action with us if necessary."

SMMT Chief Executive Paul Everitt added: "Urgent action is required to boost demand for new vehicles and ease pressure on UK automotive suppliers."
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