It includes short-term transitional help for business planning and employee training for suppliers with significant sales to MG Rover, "to give them a breathing space whilst they seek out new opportunities".
Business advice will be available to help these companies and they will then have access to a second phase of longer term help to improve products and processes, drawing on the successful programmes run by Advantage West Midlands over recent years.
A dedicated telephone line has also been established to provide business support and advice to companies in the Rover supply chain on 0121 6070121.
The aim is to help those firms to work towards supplying other customers. It also includes new investment by AWM over the next three years for modernising and diversifying automotive businesses, and helping new start-ups.
Trade and Industry Secretary Patricia Hewitt has announced that a Rover Task Force - led by Nick Paul, AWM chairman, would be tasked with deciding how best to allocate this support and oversee its effective implementation. The full detail of the package will be announced shortly.
MG Rover has called in the administrators after the collapse of negotiations with Shanghai Automotive Industry Corp yesterday.