When the U.S. domestic auto industry asked its government for billions of dollars in loans, it made world-wide news. Many other foreign nations have pitched in with funding for their own industries, as well. The UK has just gotten in on the act by promising £2.3 billion for the cause, with £1 billion in direct government loans and another £1.3 billion from the European Investment Bank. The UK government is promising its citizens that the loans are "no blank check" for the ailing industry. Hmm.. where have we heard that before? The British government deemed its auto industry worth saving, mentioning that up to one million citizens count on auto jobs for income. Similar to the U.S. loan deal, the British government is looking to develop a national strategy for greener, cleaner motoring.
£2.3 billion sounds like a lot of cash (about $3.2 billion USD), but some industry insiders don't think the loans go far enough. Union leader Tony Woodley claims that nearly half of the money will need to go to Vauxhall
, a subsidiary of General Motors
, and Jaguar Land Rover
, which is owned by India-based Tata
, and that the cash infusion will do little to aid the hundreds of suppliers that are hurting just as badly.
[Source: Times Online
, Photo by Andrew Winning - WPA Pool/Getty]