Business secretary Lord Mandelson warned of further job losses in the car industry following Nissan's announcement to shed 1,200 staff.

Asked by the Daily Telegraph whether he expected more redundancies in this sector he said: "I expect there will be.

"I appreciate this will be a tough time for workers. We will help any employee find alternative opportunities as quickly as possible."

The Nissan jobs are due to go at their Sunderland plant, which remains the UK’s largest car exporter and producer.