Boost for UK car industry

The motor industry has received a double boost with news of huge investments by two of the UK's biggest carmakers.

Ford and Nissan will both receive Government support towards almost £2 billion of investment to develop new environmentally friendly engines and a new electric car.

Business Secretary Lord Mandelson announced that the Government had agreed to back Ford's proposed £1.5 billion investment over five years for development of a new generation of greener engines and vehicle technologies.

The Government will provide £360 million in loan guarantees towards six projects through its Automotive Assistance Programme, backing a proposed loan of £450 million which is being considered by the European Investment Bank.

Ford's plans will safeguard around 2,800 skilled jobs in the UK at its research and development centre at Dunton in Essex as well as its manufacturing plants in Dagenham, Southampton and Bridgend in South Wales.

It was also announced that Nissan will produce its electric car, the Leaf, at its plant in Sunderland.