£2 billion for 'greener' car industry

The government’s new package of more £2 billion in loans for the UK auto industry makes low-carbon initiatives a front-and-center priority.

Included in the proposal are  loans of up to £1.3 billion European Investment Bank (EIB) guarantees for investment in lower-carbon initiatives and additional loans of up to £1 billion for lower-carbon initiatives for non-EIB backed projects.

“Britain needs an economy with less financial engineering and more real engineering,” said Business Secretary Peter Mandelson. “The car industry can and should be a vibrant part of that future.”

He added, “The steps we are taking today will help companies speed their way to becoming greener, more innovative and more productive.”

Loans under the plan will be made available to UK auto-makers seeking support for projects of £5 million or more, as well as to automotive parts suppliers that earn £25 million or more annually. Officials stipulate that any projects obtaining loans must provide for a green economic recovery in the UK.

No word yet on when those loans will actually become available, however, as the package must first win approval from the European Commission.