The UK motor industry has been offered its first formal meeting with the Government since November, The Times reports, as ministers come under increasing demand to offer a multi-billion pound support loans to ease the sector’s financial troubles.
Business Secretary Lord Mandelson has initiated the fresh talks with the industry following a Christmas break in the negotiations, according to Whitehall sources.
The talks were offered on the eve of the publication of the Society of Motor Manufacturers and Traders (SMMT) figures which show that UK new car sales fell 11.3 per cent in 2008.
SMMT is leading negotiations with the Government to gain assistance for the industry after announcing that new car sales fell again in December.
However, plans to bail out UK carmakers must come with conditions attached, green charity, Friends of the Earth said today. The Government should only give financial support to the car industry if companies guarantee that they will play their part in cutting UK carbon dioxide emissions and produce green cars, the charity claims.
Friends of the Earth’s transport campaigner, Tony Bosworth, said:
“The motor industry is clearly facing difficult times – but any Government help must be on the condition that the industry plays its part in helping the UK move towards a low carbon economy by fast-tracking the production of greener cars.
“Cleaner, smarter cars that use less fuel will not just cut climate-changing emissions, they will slash fuel bills too.”
