No more handouts for motor industry, Business Secretary warns

Business Secretary Vince Cable has warned Britain's faltering motor industry not to expect any more handouts from the government.

"I don't see the future in terms of large-scale government support for individual (car) companies," he told Sky News at an international automotive summit in London. "We have just emerged out of a period of very heavy government investment (in the motor industry). We are now in a different era", he added.

Cable also ruled out the possibility of another government car scrappage scheme. The last government's £400m cash for cars scheme proved highly popular, and gave Britain's automotive industry a timely shot in the arm as it faced up to the worst recession in decades.

He acknowledged that the scrappage scheme did work "in a crude way", but stressed that it was a "very expensive form of support". Rather than spend excessively to support the automotive industry, Cable challenged politicians instead to provide means of support that are "genuinely affordable".

The minister's words have raised fears that a £5,000 'green car subsidy' could be scrapped. The subsidy was designed by the previous government to help kick-start the production of electric cars - many of which would be made at Nissan's Sunderland plant. The Shields Gazette report that if the subsidy were to be axed, the North East's car industry would find it difficult to compete against European countries such as France, Portgual and Holland, where the initiative will definitely be offered.

Despite the potentially gloomy forecast, the UK has a growing reputation for electric and hybrid vehicle production. Along with Nissan - whose all-electric Leaf model will be made here - Toyota recently started producing the petrol-electric hybrid Auris at its Burnaston plant in Derbyshire. General Motors are also considering the UK as a location for production of its Ampera electric vehicle.

Andrew Wilkinson, Evesham, VOLKSWAGEN CARAVELLE

Rupalee Ghia, Middlesex, Mini Cooper