Nissan says battery plant still on track

Dec 15 2009 by William Green, The Journal

NISSAN last night insisted a project designed to bring manufacturing jobs to the North East is on track, despite concerns over the Government's help for the car industry.

In July this year, the Sunderland car maker unveiled plans to create hundreds of new jobs in a £200m investment to build batteries for electric cars.

The Government said at the time that it was working with the company on supporting the development by offering grants and loan guarantees, including support through its Automotive Assistance Programme (AAP).

But a report from MPs yesterday revealed that not one single loan or loan guarantee has been made under the programme.

The scheme, which involves a £2.3bn package of loan guarantees to Britain’s car makers and large suppliers, was announced in January this year.

But “little progress has been made in releasing funds through this scheme”, said a report from the House of Commons Business Innovation and Skills Committee.

Peter Luff, the committee’s Tory chairman said: “When it was announced, AAP represented a genuine opportunity to help the automotive industry.

“But it is now December and not a single loan or loan guarantee has been made.

“The scheme seems to have been a wasted opportunity to support this important manufacturing sector during the recession. It is up to the Government to prove us wrong, but they must ensure that funds are released to companies very quickly.

“It is late in the day for this to happen, so the Government must act soon.”