LONDON - GROUPS Representing Britain's car industry said on Wednesday they had urged the government to help bolster the ailing sector, partly by increasing access to credit.

The Society of Motor Manufacturers and Traders (SMMT), and the Retail Motor Industry Federation (RMIF) said in a statement they had written to finance minister Alistair Darling and business secretary Peter Mandelson 'regarding the impact of the current economic crisis on the UK motor industry.

'Urgent action is required to boost demand for new vehicles and ease pressure on UK automotive suppliers,' said SMMT chief executive Paul Everitt in the statement, which said the letter outlined a number of initiatives the government could take to stimulate the market and mitigate the effects of the economic downturn.

The call for help comes as US automakers return to Capitol Hill on Wednesday, hat in hand, a day after warning lawmakers that the economy faced a 'catastrophic collapse' if the government does not come through with US$25 billion (S$38 billion) in loans needed to keep their businesses afloat.

Automakers worldwide are suffering from a global economic slowdown.

Japan's Toyota Motor Corp. said it would shut down production at all of its US and Canadian plants for two days next month because of sluggish sales.

German solar energy company SolarWorld meanwhile unveiled a surprise billion-euro (S$1.94-billion) bid for Opel, owned by ailing US giant General Motors, to create the 'first green European car company'.

For its part, Britain's automotive sector is demanding support measures that include allowing companies financing manufacturers to access funds available to banks through special liquidity arrangements.

It also wants national arrangements giving manufacturers and suppliers access to loan facilities, including potential government guarantees, to maintain liquidity and investment.

'The motor industry faces a set of unprecedented market conditions,' SMMT's Everitt said.

'The dramatic falls in demand for new vehicles in the UK, Europe and around the world, combined with the limited availability of funding and liquidity now puts at risk valuable industrial capability.' Although Britain is no longer home to any major British car manufacturer, the country is the base for sizable factories owned by auto giants such as BMW, Honda and Nissan. -- AFP