New models for car credit customers

Britain's car industry has been given a much-welcomed boost by two Japanese car-makers announcing new models that are to be produced in the UK and sold to UK car credit customers.

Last week's Paris motor show saw Honda unveil the latest version of its Jazz city car, which will be made it the company's Swindon factory next year - this represents the first time the Jazz has been made outside Japan and China. Toyota announced the design of its new Avensis, which will be made at Burnaston next month.

Honda already produces the Civic and the CR-V models at Swindon, and it makes 238,000 a year available to car credit customers. Even though that figure is likely to experience a temporary drop, the company expects it to gain pace again at 240,000. Toyota said its Derbyshire plant would be the only one to produce the new Avensis.

The motor industry is keen to encourage action to counteract the economic downturn. Carl-Peter Forster, the head of GM's European operations, spoke out at the motor show about interest rates, which are currently posing a challenge for customers wishing to take out car credit to finance a new vehicle. "A conservative wait-and-see approach is not the answer," he said. "If it continues I think we will see a real economic crisis. We will see a worse economic situation if we do not see an easing on interest rates."

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