SMMT calls on government to help car makers

The letter suggests initiatives to stimulate the UK vehicle market and mitigate the effects of the downturn to ensure auto manufacturing remains an efficient and effective global player. The automotive sector is calling for support measures to include: Allowing manufacturers’ finance companies access to the funding available to banks through the special liquidity arrangements. This would allow them to support customers and their franchise networks. Scrapping plans for increased VED and new first year rate. This would provide a strong signal to buyers and help to improve residual values. Increased capital allowances for fleet buyers, particularly for buyers of commercial vehicles, to stimulate immediate demand. Shelve plans for reform of business car capital allowances, as overall impact and timing is unhelpful. Remove expensive car restrictions under capital allowances to help demand for UK higher end manufacturers. And, manufacturing support to include: National arrangements to allow manufacturers and suppliers access to loan facilities, including potential government guarantees, to maintain liquidity and investment. Help to speed up the allocation of existing funding to support training, R&D projects and energy efficiency measures. This would help upskill employees, accelerate innovation and provide an immediate stimulus for green collar jobs. SMMT chief executive Paul Everitt said the motor industry faced a set of unprecedented market conditions. He went on: “The dramatic falls in demand for new vehicles in the UK, Europe and around the world, combined with the limited availability of funding and liquidity now puts at risk valuable industrial capability. Urgent action is required to boost demand for new vehicles and ease pressure on UK automotive suppliers. The pre-Budget report should set out the strategy and measures needed to restore consumer confidence and support valuable industrial capability during this difficult period.”