Car makers to resume bail-out talks

* Government to meet with industry chiefs * Lord Mandelson initiates more talks * Other nation's Governments are providing aid...

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What Car? Staff
08 January 2009

Car makers to resume bail-out talks

Talks between car industry chiefs and the Government are set to resume, against a back-drop of plunging sales.

The two sides originally met in November, with car industry bosses seeking a multi-billion pound bail-out for the troubled sector.

Business Secretary Lord Mandelson initially said that manufacturers should seek cash from the European Investment Bank, but has now instigated further talks with industry leaders.

Manufacturers are reported to be frustrated that the UK car industry is being put at a disadvantage by the reluctance of the state to intervene, compared with bail-outs and credit-support schemes in the United States and continental Europe.