Government urges auto suppliers to check out support schemes

Support for the supply chain was one of the issues raised at the recent meeting of industry leaders with the Secretary of State, Peter Mandelson and Business Minister, Ian Pearson (pictured). In a letter being sent out to vehicle manufacturers for their suppliers, Ian Pearson outlines a number of measures that were announced by the Chancellor in the Pre Budget Report. These include: * A Small Business Finance Scheme to support up to £1 billion of bank lending * A £1 billion guarantee facility to support bank lending to small exporters * A £50 million fund to convert businesses' debt into equity * A £25 million regional loan transition fund. The European Investment Bank has also earmarked E15 billion for 2008-2009 for loans to small and medium sized businesses in Europe as part of an overall package of funding. Ian Pearson said that with a number of vehicle manufacturers cutting back on production over the next few weeks, it was inevitable that this would have an impact on the supply chain. "We want to make sure that all their suppliers know that there is help out there whether they're facing credit constraints or looking to invest in training. "The automotive sector is a vital part of the UK's economy and as part of the Government's commitment to manufacturing, we are determined to maintain the UK as a location of choice for manufacturers," he said.