Peter Mandelson leaves Downing Street
THE Government today unveiled a long awaited package of support for the car industry worth £2 billion amid warnings of a "catastrophe" for the sector with the loss of tens of thousands of jobs.
Business Secretary Lord Mandelson said the Government would provide loan guarantees to car manufacturers and large suppliers to try to reverse a huge slump in car buying.
Jobs have already been axed in the industry and a number of plants are on extended shutdowns because of the drop in sales.
Leading car firms including Honda, Nissan and Jaguar Land Rover are among those which have been hit.
Lord Mandelson said today’s measures offered a "significant boost" to the industry but he denied the Government was offering a "bail out" or a "blank cheque".
