Merseyside MP warns Peter Mandelson time is running out for car components industry

However, motorists will be offered grants of up to £5,000 to buy an electric car, under “green” moves to jump-start the struggling industry to be unveiled today.

Cities will also be invited to pioneer the mass introduction of the vehicles, by setting up a network of roadside power points where their batteries can be recharged.

Councils will be invited to bid to be among up to five “green cities”, where trials will begin next year following talks with power companies. Liverpool will be a strong contender to kick-start the initiative, after getting the nod last year to introduce convenient charging points for electric vans.

Meanwhile, the grants to make electric cars cheaper to buy – they are often seen as overpriced – will give a big boost to the Vauxhall plant at Ellesmere Port, which employs 2,200 workers.

General Motors (GM) said last year it was “seriously considering” Ellesmere Port to manufacture the proposed battery-powered Chevrolet Volt.

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