The UK automotive industry received a boost last week with news that Nissan and McLaren are set to build new plants to accommodate electric car manufacturing in the future. This £2.65 billion boost comes just days after the £1.5 billion investment announced by Ford, which was backed by the UK government in the form of a loan guarantee.

Financial details of the Nissan project have been released with the UK government providing £21 million in the form of a government grant and European Investment Bank funding of £197 million on the table. Details of the McLaren project have yet to be released although this is a welcome return to the consumer market by a company which has a reputation second to none in the car industry.

News of these investments comes at a perfect time for the UK government with unemployment starting to fall, although some believe it could rise again in the short term, and the UK crying out for overseas investment. There is no doubt that the electric car market will be a market for the future and if the UK government can create a firm base at this early stage it bodes well for the future.

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