Business Secretary Vince Cable stated that the UK motor industry will need to learn to survive without financial support from the Government. He said that it is clear that the era of subsidies is now over, and automakers need to realistically consider what is affordable.
Despite Cable’s statements, he did make it clear that the Government is not completely abandoning the industry, and that there is potential funding available for research in carbon reduction measures.
Cable spoke at a London Conference organized by the Society of Motor Manufacturers and Traders stating that he recognizes that the motor industry is an important part of the UK economy.
However, he said that the UK has to recognize that it is a different world and the future will be about the support of individual companies.
Some of the measures that may now be facing cuts include a promise by the Government last year to offer those who purchase electric cars a £5,000 subsidy. The past Government stated they would offer £250m in funding for the scheme which was to start in 2011 but the matter is now under active consideration.
However, senior industry officials stressed that there was still need to support the UK motor industry in an effort to alter the UK into a low carbon economy by reducing emissions from cars.
Co-chairman of the Automotive Council, Richard Perry Jones, stated that the UK is now a hub for hybrid and electric vehicle productions.
