UK Car Industry Not Seeking US-Style Bailout - But it Urgently Needs Government Support or Jobs Will be Jettisoned

LONDON, December 10, 2008: Tony Woodley, joint general secretary of Unite, today (Wednesday) reiterated the union's call to Government to provide GBP13 billion in short-term industrial loans to help manufacturing and the car industry weather the current economic storm.

Unite is warning that without rapid action from Government, jobs are certain to be jettisoned in car manufacturing and its components supply chain.

"It is vital that we hear some reassurance from Government that car manufacturing will not be allowed to pay the price for the recklessness of the banks. Government needs a clear, forceful strategy to support the industry through these tough times or we will see companies jettisoning workers," warned Tony Woodley.

"The stakes are that high. Viable, well-managed companies who are struggling simply because the supply of credit has dried up will go to the wall unless short-term state support is made available, just as it has been in Germany and is expected to be in the US. Unless there is similar action now by our government, jobs and communities will suffer - and that is a price that is simply too high to pay."

Tony Woodley's comments follow the Chancellor's reported statement that there will be no "bailouts" for the UK car industry.

"We are not asking for US-style bailouts for the UK car industry. Let us be clear - the UK industry is profitable and producing the goods today's customers want. The sector does not need a taxpayer bailout but it does need urgently short-term financial support to help it through this financial drought," continued Tony Woodley.

"When the economic downturn looked likely to wreck our banks, the Government did not hesitate to act. They moved quickly to take a stake in the banks and help shore up confidence in the financial sector. Manufacturing and the hundreds of thousands of people who depend on it for a job in this country need them to be just as strong and clear now and intervene to support industry."

Tony Woodley met with Lord Mandelson in early November to warn that the credit freeze could devastate UK car manufacturing and its associated components sector as viable UK companies are face cuts or closure because banks are refusing to continue to provide financial support.