UK's Funding Package Receives EU's Green Light

The European Commission finally approved UK's 2.3 billion pounds ($3.18 billion) funding package for the domestic ailing automaker and the state is now waiting for applications to distribute the money. Britain initially said in early January that it would guarantee up to 2.3 billion pounds in state funding to domestic automakers, in return to saving jobs and maintaining local operations.

Business Minister Ian Pearson said in a public statement that he wants to help struggling automakers as fast as possible but there are still a number of steps to be followed before proceeding to directing the money to companies. Following a meeting between Minister Ian Pearson, car manufacturers and suppliers' representatives, an industry consultant told Reuters that companies who aim to receive government money have been asked to issue detailed projects regarding the exact operations to be supported with these particular funds.

"There is a certain amount of cynicism by some suppliers who want to know exactly how the money will be distributed. In order to be eligible, you have to be a reasonably solid company with a specific project," he told Reuters on condition of anonymity.

Beside the 2.3 billion pounds funding package now approved by the European Commission, the United Kingdom will also grant around 27 million pounds to Jaguar Land Rover to support the company in building a green vehicle. Just like we told you yesterday, Land Rover is willing to advanced the LRX concept into mass-production, following the positive feedback it received at the 2008 Detroit Auto Show.

Obviously, the production car will rely on fuel-efficient and environmentally-friendly technologies, as well as on lighter materials to improve engine performance and protect the environment in the same time.