British Gov't Offers Carmakers $3.2 Billion

The British plan would provide mainly loan guarantees and worker training for country's largely foreign-owned.

Published: 29-Jan-2009

LONDON -- The British government on Tuesday announced a $3.2 billion financial support package intended to make Britain's struggling automakers "greener, more innovative and more productive" as they battle through a deepening recession.

"This industry is not a lame duck, and this is no bailout," Business Secretary Peter Mandelson said in Parliament. "There is no blank check on offer, no operating subsidies."

Unlike the $17.4 billion U.S. bailout of General Motors and Chrysler, and France's plan to pump up to $9.6 billion into its ailing carmakers, the British plan would provide mainly loan guarantees and worker training.


ZAP is hoping to keep the MSRP at $30,000 for the Alias three-wheeler pictured here.

Hero Motors Ultra Maxi uses a 250 watt motor to avoid falling into category that would require license fees, road taxes and registration.

The scooters currently come in two models, 1000 and 1500 watts, and retail for NZ$2200 and NZ$2400 including GST. Photo courtesy of Scoop.


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