Currently reading: £20m Nissan loan 'under review'
UK's new coalition government might cut Nissan's £20m loan to build the Leaf in Sunderland

The £20 million loaned to Nissan by the former Labour government is under review by the UK’s new coalition as part of £6.2 billion in planned cuts.

The money was loaned to Nissan to partially fund the building of the new Nissan Leaf electric car at its Sunderland plant from 2013.

However, the treasury has announced all spending is under review and reports in several national newspapers have suggested the Leaf loan may be cut to make savings.

“The government is reviewing the loan,” a Nissan spokesman told Autocar, “but as far as we’re concerned we signed an agreement with BIS [Department for Business, Innovation and Skills] that we believe is binding.

“The new government has said it’s committed to a green economy and zero-emission motoring is part of this. We’ll have to wait and see.”

Media reports claim treasury ministers are consulting lawyers on whether loans such as those given to Nissan can be reversed. The previous government also handed out loans to Ford and Vauxhall, both of which will also be reviewed.

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golfman 26 May 2010

Re: £20m Nissan loan 'under review'

It's economics. If you have, let's say, a company making glass - who threaten to leave the country and make its 200 workers unemployed. They then say to the government, 'Give us £20 million and we'll stay here'. How much will it cost the economy if you let them sack the workers? Is it more than £20 million?

fhp11 26 May 2010

Re: £20m Nissan loan 'under review'

The leaf will not kick off in a big way...

Seriously.. How many people want a pure electric car hampered by that range?

If you want to save the planet/like to believe government lies to justify tax then wait for the Chevrolet Volt/Vauxhall Ampera. At least that has an engine which means if you want to go further than 74 miles you can.

And thats before you consider the price... Near 30K before subsidies!

Even after subsidies you could get a BMW 3 series... nicer to drive (I imagine) better specced and still very efficient.

I suspect the Leaf will fall........ much like a real leaf after its moment in the Sun.

theonlydt 26 May 2010

Re: £20m Nissan loan 'under review'

beachland2 wrote:
if you were nissan what would you do?
Pull out and build cars elsewhere - probably eastern Europe, because every other government out there is willing to offer tax breaks, subsidies and anything else to get a productive and decent sized car plant with a future in their country. £20m isn't much in the scheme of things and could easily pay for itself if the Leaf kicks off in a big way (export market, tax on profits, extra shifts for workers, the multiplier effect for all the Nissan suppliers)