Green car pledge to boost the economy?

Date: 16/6/2010

The UK looks an attractive investment for international motor manufacturers thanks to the electric car pledge, one expert has suggested.

Lord Mandelson's £20 million grant to Nissan so it can mass produce electric vehicles has been given the green light by the government.

Media Manager for the Society of Motor Manufacturers and Traders Jonathan Visscher said it is a positive step for the industry.

"The fact that the UK has pledged to support this manufacturer will give the rest of the UK confidence to carry out commitment to low-carbon technology," he added.

Mr Visscher also noted the motor industry is global and without car manufacturers the automobile sector in the UK would not be worth as much.

He stated the motor industry accounts for ten per cent of exports and the benefits of supporting this are wider than one manufacturer alone, as jobs are provided with retail networks and suppliers.

According to the Department for Business, Innovation and Skills, the Plug-In Car Grant – which will offer a payment worth 25 per cent of the cost of a new ultra-low carbon vehicle - will be available to both private and business fleet buyers.

Posted by Nick Anderson