Government considers subsidy for carmakers

The Government is considering giving car manufacturers a subsidy to help cover the wages of workers whose hours have been cut over the past few months. It follows a meeting between business secretary Lord Mandelson and industry representatives today (January 28) urging the Government to help ailing car makers bring in a shorter working week rather than laying off staff.

According to trade union Unite, the idea has not been ruled out and the Department for Business, Enterprise and Regulatory Reform says firms need to come back to them with fully costed proposals.

Lord Mandelson had called the meeting to discuss the Government’s £2.3bn loan guarantee scheme announced yesterday (January 27), but industry representatives took the opportunity to press for specific proposals to ease consumer credit warning that without more help, tens of thousands of jobs could be lost.

Car sales are falling amid the economic downturn, with unions warning of a jobs catastrophe if the measures do not have an impact soon.

Several plants are on extended shutdowns, with firms including Honda, Nissan and Jaguar-Land Rover among those affected.

“I am confident that the actions we and the automotive industry will now be taking together will help the industry build the bridge to a greener future for the auto sector,” Lord Mandelson said.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here