Car loans

The European Investment Bank (EIB) has approved €866m (£779m) of loans for European-based car manufacturers to aid in the design and build of cars that emit fewer CO₂ emissions.

The package includes £370m to Nissan and £340m to Jaguar Land Rover (JLR), who collectively employ 20,000 people in the UK. Volkswagen will also receive a loan for its plant in India to develop greener cars ahead of introducing them to the Indian market next year.

Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said: ‘Confirmation of EIB support for vital investments in cleaner technology is extremely good news for the UK motor industry. It will provide welcome reassurance to the companies concerned and signals their determination to be prepared for the low-carbon future.’

Over half of the loans approved will be provided under the EIB’s European Clean Transport Facility (ECTF) and comes as part of a larger package to support the industry, with the EIB planning to raise its total lending by €15bn per year for 2009 and 2010.