Unions have welcomed a 5.5m training package for Rover workers facing redundancy as "a good start".

The money, announced by Education and Employment Secretary David Blunkett, will go to retraining staff who lose their jobs following the BMW decision to break up the car company.

It will cover workers at the Rover plant at Longbridge in Birmingham and thousands of others in the components industry.

The Cowley plant, which is due to build the new Mini for BMW, has now stopped production of the luxury Rover 75 saloon until May 8. Mr Blunkett said: "This package will benefit those facing redundancy. It allows them to re-equip themselves for work and encourages other local employers to give them the chance they deserve."

Thousands of workers are expected to lose their jobs when Alchemy Partners takes over the company to produce MG cars for a niche market.

A rival bid is being put together by former Rover chief executive John Towers but even if the alternative plan succeeds, job losses are still seen as inevitable. Sir Ken Jackson, general secretary of the Amalgamated Engineering and Electrical Union, said of Mr Blunkett's announcement: "This is a very welcome start to what will have to be a huge retraining package."

*The car industry was given a much-needed boost today when Japanese giant Honda unveiled plans to build another model at its Swindon plant.

Production of the four-wheel-drive CR-V will start in eight weeks' time. Honda said the move followed "exceptional demand" for the car.

Story date: Monday 10 April

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