The British motor industry has secured itself another temporary lifeline with news of huge investments by two of the world's biggest carmakers.
Ford and Nissan will both receive government support towards almost £2 billion investment to develop new environmentally friendly engines and a new electric car.
The government will provide £360 million in loan guarantees towards six projects through its Automotive Assistance Programme, backing a proposed loan of £450m, which is being considered by the European Investment Bank.
Ford's plans will safeguard around 2,800 skilled jobs in Britain at its research and development centre at Dunton in Essex as well as its manufacturing plants in Dagenham, Southampton and Bridgend in south Wales.
It was also announced that Nissan would produce its electric car, the Leaf, at its plant in Sunderland.
The announcement was welcomed by the Unite union as a vote of confidence.
Joint leader Derek Simpson said: "This is a huge vote of confidence for British manufacturing.
"It secures thousands of skilled jobs and puts Britain at the heart of a greener future for the automotive industry.
"The government's financial support for both Ford and Nissan's initiative is proof that Labour is prepared to act to support jobs and green manufacturing.
"Tory policy on British manufacturing is to do nothing."
Business Secretary Lord Mandelson added: "This investment is a fantastic vote of confidence in the Sunderland plant and its excellent workforce.
"The automotive sector is of key importance to the UK. It supports R&D, technological innovation, skills and a supply chain that's a mainstay of the wider manufacturing sector."
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