The UK’s Retail Motor Industry Federation (RMIF), representing about 8,000 retail motor industry businesses, has welcomed government incentives announced on Tuesday.
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“Consumer confidence in car-buying could receive a boost as a result of the government’s public show of support for the motor industry,” RMIF director Sue Robinson said.
The support package includes a scheme to unlock GBP1.3bn of loans from Europe for car manufacturers and major suppliers while the UK government would also guarantee up to GBP1bn of further loans.
“This investment in the industry should send the right message to consumers, endorsing the availability of credit and the excellent deals in the showroom,” added Robinson.
The RMIF also welcomed references by industry minister Lord Mandelson to a self financing scrappage scheme that would encourage motorists to dispose of older and more polluting vehicles, in favour of newer vehicles.
Robinson said: “The proposition that the UK should adopt a self-financing scrappage policy was first proposed by RMIF chairman Paul Williams on behalf of the RMIF at our meeting with Lord Mandelson in November 2008.
“The RMIF will shortly be presenting a paper to Government that puts the case for a self-financing scrappage scheme in the UK that mirrors those successfully adopted in other EU states.”
Group Lotus said it welcomed the government’s investment boost into green and low carbon vehicle projects in addition to increasing the funding for training of employees in the motor industry.
Chief executive Mike Kimberley said: “It has been a long time coming but I welcome the announcement given by Lord Mandelson. I am delighted that the UK government has recognised the vital importance to the automotive industry of research into green, environmental and low carbon vehicle solutions.”
“It will be a very tough year for the global automotive industry, but Lotus is reasonably placed compared to some other car companies. We have an ambitious research and development programme and we are very encouraged by the invitation given by Lord Mandelson to regional development agencies to bring forward programmes for research and development into cleaner engines and lighter cars, areas in which Lotus is one of the world leaders.”
