Carmakers in UK bail-out appeal
Added (2008-Nov-27)
Senior figures from the UK's carmaking industry are to meet business secretary Lord Mandelson later to appeal for government assistance.
They will propose a package of measures which they say would help the industry through the difficult economic climate.
These include more credit for manufacturers and suppliers, giving car finance firms easier access to cash and delaying a rise in vehicle excise duty.
Globally there has been a fall in demand for new vehicles.
'Urgent action'
Earlier this week the Society of Motor Manufacturers and Traders (SMMT) said the motor industry needed a national government scheme to mitigate the impact of the downturn.
It was "appropriate and necessary" for the government to support the sector, it said.
"The dramatic fall in demand for new vehicles around the world, combined with the limited availability of funding and liquidity now puts at risk valuable industrial capability," the SMMT added.
It said that the lack of credit was the prime problem and said "urgent action" was needed to boost demand for new vehicles.
In the US, the "Big Three" carmakers have been told to come up with their own viable recovery plan if they want a $25bn (£17bn) government rescue.
The leaders of both houses of Congress said Ford, General Motors and Chrysler had until 2 December to present a plan.
Meanwhile, the European Commission proposes to give at least five billion euros (£4.25bn) to the car industry, which is to be targeted at helping develop green technologies.
