£3.5m rescue package to save jobs

West Midlands companies in the vehicle industry are to receive £3.5 million of Government and European cash aimed at safeguarding up to 1,000 jobs.

The money will involve grants of up to £50,000 for specific projects to help companies survive the recession, boost productivity, introduce new products and bring manufacturing back from abroad.

The investment comes from regional development agency Advantage West Midlands and the European Regional Development Fund.

Launching the automotive recovery programme today, regional minister Ian Austin said it was designed to provide component part makers with up to £50,000 of specialist consultancy help.

The programme will be run by the Wolverhampton Science Park-based Manufacturing Advisory Service, in partnership with car parts support agency Accelerate, and aims to help more than 120 companies, from small engineering firms up to local car producers.

Mr Austin, MP for Dudley North and chairman of the West Midlands Taskforce, said: "This funding package is a direct response to the current problems facing the automotive industry and highlights the Taskforce and Advantage West Midlands' commitment to helping this vital part of the region's industrial sector weather the recessionary storm.

"With this tailored support immediately available, I urge companies to come forward and to start benefiting from the expertise and knowledge available."

Colin Tivey, chairman of the Manufacturing Advisory Service and a former vehicle line director at Land Rover, in Solihull, said: "I am delighted to announce this crucial support for the region's car industry, support that is focused on securing the future of the auto sector so that it is in a strong position to pick up work when the upturn arrives."

Companies interested in applying for strategic assistance can visit www.mas-wm.org or call 0845 245 0845.