Senior executives from the car industry are to ask Lord Mandelson today for help to sustain manufacturing through the economic downturn.
They will suggest a series of measures designed to prevent further factory shutdowns caused by falling global car sales.
These include increasing credit for firms, delaying a rise in vehicle excise duty (which is currently scheduled for 2009) and aid for car finance companies.
This comes after the Society of Motor Manufacturers and Traders (SMMT) called for national government schemes to rebalance the economy:
“The dramatic fall in demand for new vehicles around the world, combined with the limited availability of funding and liquidity now puts at risk valuable industrial capability.
“Urgent action is required.”
A lack of credit is blamed primarily for the problems facing the industry, which could be rectified if Mandelson agrees to implement the proposed measures.