Business Secretary Peter Mandelson is to unveil a package of government support for the UK’s ailing car industry this afternoon.

Lord Mandelson will outline the measures in the House of Lords shortly after 3pm today, which are expected to include a scheme to guarantee loans for car manufacturers and provide funding to give extra training to workers.

Downing Street said the measures included long and short term support but were not a bail-out. The funding would be directed towards investment in low-carbon technologies, in line with EU rulings on state support for certain industries.

The car industry has experienced massive losses in recent months as sales have dropped due to the deepening recession. Earlier this month Jaguar Land Rover announced 450 job cuts, and several other car manufacturers have put their employees on three or four-day weeks to cut costs.

Gordon Brown’s official spokesman said this morning that the package was designed to help car manufacturers weather the economic crisis and ensure a “strong future” for the industry.

The spokesman said: “Lord Mandelson and the department have been making clear that, in our view, the car industry is a sector with a strong future.

“So not only are we in a position to provide some support to help them get through this difficult period but also, and this will be a very important part of the announcement, this is about how we provide the right support for them in the future.”

Environmental groups have objected to the stimulus package and said they will oppose any measures that encourage the use of private cars, arguing that the government should invest in improvements to public transport instead.

This entry was posted on Tuesday, January 27th, 2009 at 2:30 pm and is filed under Car Insurance, Vehicle Breakdown Cover. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.