The Prime Minister has said the Government "will do what it can to help" the struggling car industry, including looking at ways to ensure loans are available for people wanting to buy a new car.
Gordon Brown said he will take action to prevent car credit from "freezing" in the same way as the mortgage market.
He said the Government has already been in talks with some firms about any assistance it can provide to help the industry survive the recession, including retraining workers to give them new skills.
During Prime Minister's questions, Labour's Anne Snelgrove (South Swindon) asked: "What further plans do you have to help this important industry during the global economic downturn?"
Mr Brown replied: "There are two issues facing the car industry at the moment: one is a shortage of demand for cars, the second is the availability of credit for people buying their cars.
"The car credit problem - that is loans for car purchase - it's basically a market that is outside the traditional banking industry."
He added the Government is making efforts to find ways to "get help into the car loan industry".
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