At a summit meeting with car makers, the government set out the details of its £2.3 billion support scheme for the ailing auto industry.
Originally announced in January, the loan programme has two components: £1.3 billion in loans from the European Investment Bank and £1 billion in loans guarantees, both for low carbon initiatives.
Sifting through the details of the Automotive Assitance Programme, companies have to meet some basic criteria to qualify for funding, including:
-
be a car maker or in their supply chain;
-
have a turnover of at least £25 million; and
-
be planning an investment of £5 million.
In general, the money will only be lent to projects that meet the government's critieria of green or low carbon, but the government will also consider projects that:
"deliver demonstrably new activity and investment that would not otherwise happen without the provision of Government support."
That's a general enough catch-all that most larger, struggling automakers will benefit.
And the loans will cover a wide range of costs, including:
So while this new government scheme is targeted at larger auto makers - less than 400 companies actualy have a turnover of more than £25 million - the package appears flexible enough that most of them should qualify for loans if they need them.
And if the money does start flowing, that could help protect their investments and skilled workers and, in turn, benefit the 2,800 other smaller companies in the sector's supply chain.