The Department of Trade and Industry has said that the End of Life Vehicles Directive will be implemented in the UK at the same time as in the rest of Europe.

Manufacturers had expressed alarm at earlier indications that the Government was planning to introduce EU legislation that makes carmakers financially responsible for recycling their cars and ensuring that 80% (by weight) of all new cars are made from recyclable material, in 2002 – five years before the rest of Europe.

But the DTI has told the Society of Motor Manufacturers and Traders that Britain would implement the ELV legislation "on a level playing field with Europe".

An SMMT spokesman said: “The main concern surrounding this legilsation was that, unlike in Germany and France, carmakers in the UK were facing an annual bill of £300m for recycling and parts' recovery in just a few months time. That could only be bad news for the likes of MG Rover which is getting back on its feet financially and Ford which is in a weakened position in the UK at the moment.”