Despite the threat of spending cuts, the UK units of General Motors Co. and Nissan Motor Co. remain optimistic that the new coalition government will ensure that funding for the loans stay in place to support carmakers.
GM released a statement that with the new government coalition moving into Parliament, previous spending commitments will be assessed in view of the new government's policies and priorities.
GM also said that manufacturing in the UK is a sector expected to make a valuable contribution to the UK and hence, "deserves government support."
After the May 6 election, the center-right Conservative party entered a coalition with the Liberal Democrats.
In support of GM's Opel/Vauxhall turnaround, the previous Labour government signed off a 270 million pound ($390 million) loan guarantee as well as 20 million pounds for Nissan to support capacity adjustments and investment into new low-carbon products.
A Nissan UK spokeswoman said that a deal has been made with the Department of Business, Innovation and Skills (BIS) and that the new coalition government is "fully supportive" of pursuing a greener economy and zero emission transport. [via autonews]