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Uk car industry gets a fuelled injection of funds

  •  29 January 2009
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A $4.9 billion support package has been announced by the British government to aid its struggling auto industry.

The car industry has slumped faster and much further than any other manufacturing sector, UK Business Secretary Lord Mandelson said. The government's economic measures include guarantees to unlock loans from the European Investment Bank and a $2 billion investment in eco-friendly vehicles.

Lord Mandelson defended the package saying it was not a "bailout" - adding that the industry was "no lame duck".

Sales are down more than 34 per cent compared with 2008 and sales of some luxury brands have plummeted nearly 80 per cent.

The auto sector in the UK is vital to the country's manufacturing industry.

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