The drastic fall in production, along with reports that a plan to rescue Birmingham van maker LDV had collapsed, prompted renewed calls for government help for the industry. The Government and the banks, most of whom have had a helping hand from the taxpayer themselves, must strain every fibre to secure this plant's future, to keep the lights on in this [LDV]factory and these skilled workers in employment.
In January, Lord Mandelson announced a package of government support for the car industry - including a scheme to unlock £1.3bn of European loans - and a government pledge to guarantee up to £1bn of further loans to fund investments in environmentally-friendly vehicles. However, the benefits of government assistance to the car industry are being questioned after French aid prompted Renault to announce that it is switching production of its Clio Campus model back to France from a factory in Slovenia.
It comes as EU and world leaders are trying to unite ahead of next month's G20 summit in setting out a message that nations must not resort to protectionism as a means to economic recovery. The UK government pledged £27 million ($37 million) to help Tata Motors' Jaguar Land Rover (JLR) subsidiary develop a greener vehicle. The grant will contribute toward the £400 million cost of the programme and is separate from the state aid package to help automakers weather the recession, Jaguar Land Rover said in an e- mailed statement on Thursday. The announcement comes as ministers and motor industry representatives meet in London to discuss the £2.3 billion loan guarantee plan, announced in January. UK car sales fell 22 per cent last month, and manufacturers including Ford Motor, Jaguar Land Rover's former owner, are calling for more government assistance.
Tata Motors' UK-based subsidiary Jaguar Land Rover (JLR) has initiated a voluntary redundancy programme to cut jobs of 600 of its own salaried employees over the next few months, including 300 from the management grade. This is over and above the reduction of 850 jobs late last year.
In January, Lord Mandelson announced a package of government support for the car industry - including a scheme to unlock £1.3bn of European loans - and a government pledge to guarantee up to £1bn of further loans to fund investments in environmentally-friendly vehicles. However, the benefits of government assistance to the car industry are being questioned after French aid prompted Renault to announce that it is switching production of its Clio Campus model back to France from a factory in Slovenia.
It comes as EU and world leaders are trying to unite ahead of next month's G20 summit in setting out a message that nations must not resort to protectionism as a means to economic recovery. The UK government pledged £27 million ($37 million) to help Tata Motors' Jaguar Land Rover (JLR) subsidiary develop a greener vehicle. The grant will contribute toward the £400 million cost of the programme and is separate from the state aid package to help automakers weather the recession, Jaguar Land Rover said in an e- mailed statement on Thursday. The announcement comes as ministers and motor industry representatives meet in London to discuss the £2.3 billion loan guarantee plan, announced in January. UK car sales fell 22 per cent last month, and manufacturers including Ford Motor, Jaguar Land Rover's former owner, are calling for more government assistance.
Tata Motors' UK-based subsidiary Jaguar Land Rover (JLR) has initiated a voluntary redundancy programme to cut jobs of 600 of its own salaried employees over the next few months, including 300 from the management grade. This is over and above the reduction of 850 jobs late last year.
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