The Government has pledged to increase funding for training in the automotive sector from 65 million to 100 million as part of a series of measures in a support package announced by business secretary Peter Mandelson.

The Department of Innovation, Universities and Skills has made a commitment so automotive employers will be able to access skills support and funding to pay for staff training through the Train to Gain service. It is hoped this will help both large and small employers in the industry survive the recession.

Mandelson said: "Britain needs an economy with less financial engineering and more real engineering. The car industry can and should be a vibrant part of that future.

"The steps we are taking today will help companies speed their way to becoming greener, more innovative and more productive. This is the route to securing jobs for the long term as we build a more balanced economy for Britain's future,"

Other measures include plans to invest £1 billion in lower carbon initiatives and £1.3 billion of loans to help the struggling industry.