Car firms hold talks over liquidity

12 April 2012

Representatives from the motor industry held talks with the Government over concerns about liquidity in the market, it has emerged.

A number of motoring companies attended talks with Government officials' representatives to discuss the effects of the global credit crunch on the industry.

Manufacturers met at the automotive industry summit last week, the Department for Business Enterprise and Regulatory Reform (Berr) confirmed.

A Berr spokeswoman said: "The Government met with a range of representatives from the automotive industry last week. A number of companies raised concerns about liquidity.

"The Government continues to have a range of ongoing discussions with the industry."

Car manufacturer Vauxhall later denied claims that it had held "secret" talks with the government in a bid to save jobs.

The Times reported that discussions had been held in secret between Vauxhall and Downing Street amidst fears that the manufacturer's American parent company General Motors was struggling with the global credit crunch.

Vauxhall employs around 5,000 people across the UK with major plants in the north west and Luton.

A spokesman for the company confirmed that Vauxhall had attended the automotive summit but said no cash pleas had been made.

He said: "Vauxhall has not been in secret talks about money with Lord Mandelson."

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