Automotive assistance programme guidance summary
The Automotive Assistance Programme is no longer accepting new applications
Overview
The Automotive Assistance Programme (AAP) was a support package aiming to unlock up to £2.3bn of support through the provision of loan guarantees to the UK automotive sector. Government loans were available under the AAP in exceptional circumstances.
The Automotive Assistance Programme is no longer accepting new applications, since the scheme can only operate until 31 December 2010. The Secretary of State for Business, Innovation and Skills noted in a debate in Parliament on 16 June 2010 that the Automotive Assistance Programme, whilst having served a purpose, was always a 'time limited scheme'.
The Government will consider those cases left in the AAP “pipeline” on their merits. This refers to cases where a formal expression of interest has already been made and where the Automotive Assistance Programme team have agreed with the company to progress the application.
AAP Objectives
AAP was aimed at automotive companies hit by the recession and facing difficulties in financing new investment. The aim of AAP was to ensure continued investment by these companies in:
- Development of cutting-edge green technologies that can contribute to CO2 reduction, and a low carbon future for the industry;
- Advancement of research and development (R&D) in UK vehicle manufacturing;
- Creating and sustaining jobs
Eligiblity
- The scheme was designed to support companies in the UK Automotive Sector - manufacturing and supply chain.
- The AAP was established to deliver significant investment in the sector and eligible companies would normally feature
- annual turnover in excess of £25m recorded in their last published annual report and accounts, and
- a proposed project investment of usually more than £5m
- However, cases below these financial limits were considered on an individual basis, with proposed investments of £1m being the minimum investment threshold.
