Mandelson contemplates motor industry cash
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Peter Mandelson has recently confirmed that the government is looking into solving some of the liquidity problems of the motor industry.
Explaining that the UK motor industry does not need a bail out, Lord Mandelson said at a Ford engine plant in south Wales that a cash injection into the industry would be aimed purely at alleviating liquidity issues.
"One of the ideas put to us is to find some way of putting fresh liquidity to the finance houses, the finance arms," he said.
"We are looking at it and we will make a response in due course."
The comments come as car fleet managers in the UK are now facing more pressure than ever to purchase car models which are both economic and environmentally-friendly.
Car fleets throughout 2008 were subjected to the highest price of a barrel of oil in history, and car fleet managers are still likely to be under the stress of the current economic problems.
As such, a possible cash injection to motor companies and the subsequent benefit it would have on the development of new car models would benefit car fleet managers a great deal in the near future.
