Just days after the US Government approved a $25bn loan to the US car industry, the head of Land Rover and Jaguar has called for similar support from the UK Government.

Speaking at the Paris Motor Show, David Smith, managing director of Land Rover and Jaguar, stated the UK is on the brink of a severe recession and that state aid was needed for investment in green technology.

Mr Smith said that Government action would be needed to boost consumer confidence, with tax cuts and special help for the automotive industry among the plans that should be implemented. His words came on the back of the worst August for UK sales in 40 years.

He believes that if the Government fails to pump cash into environmental work in the car industry and across other areas of manufacturing there could be a significant impact on jobs – worrying words from the country’s largest industrial employer.

Earlier this year Land Rover and Jaguar were bought from Ford by Tata, and have suffered some of the worst sales falls with all of their factories reducing production.

There was also a call for the Bank of England to cut interest rates at the Monetary Policy Committee’s next meeting – the results of which will be released on Thursday.

Of course Jaguar and Land Rover appear to be more vulnerable than most within the industry because they are exposed to the premium and large vehicle sector of the market which has taken the biggest hit due to greater fuel requirements.

Do you think the UK automotive industry should receive financial aid from the Government or should it be left to fend for itself? Leave a comment with your thoughts.