Lord Mandelson given a blueprint to save the region's car components

Jaguar Land Rover plant at Halewood

BUSINESS Secretary Lord Mandelson was today given a blueprint to save the region's car components industry hit by the economic downturn.

A cross-party group of MPs warned that the slump in sales suffered by Jaguar Land Rover, Vauxhall and other manufacturers is having a massive impact on supply firms which employ 100,000 people nationwide.

Ahead of next week's Budget, they backed his plan to offer £2,000 "scrappage" to consumers who exchange old vehicles for new cars.

But they also demanded a further cash injection to keep staff in jobs, more help for buyers through easy payment finance deals, and greater access to credit for supply companies.

Key component manufacturers in Merseyside include Getrag Ford, which employs 700 at its Halewood plant building gear boxers for Ford cars, and International Automotive Components Group Europe, which employs 150 people at the former Visteon plant in Halewood.

Knowsley North's George Howarth, who is spearheading the latest moves, said: "Our vehicle components industry is fundamentally sound, yet the economic downturn has placed unprecedented pressure on this sector.

"Immediate action that saves jobs, gives better access to credit and supports consumers who buy more environmentally-friendly cars will ensure this hi-tech industry is able to survive the downturn."

The former Labour minister has joined forces with West Midlands Tory Julie Kirkbride, who said: "Our proposals provide a solid base from which we can secure a long-term future for the industry."

They sent their plan to Lord Mandelson, together with a joint report backed by all major parties.

That report said: "The nature of the auto industry is global and actions taken in other countries, particularly across the European market, will affect UK manufacturing and jobs.

"It is therefore important that we ensure consistency with other European countries which avoid market distortions and have clear policies to stimulate the purchase of new cleaner and safer vehicles."

Other members of the group include Andrew Miller (Ellesmere Port and Neston), Louise Ellman (Riverside), Eddie O'Hara (Knowsley South) and Derek Twigg (Halton).

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