Business Secretary Lord Mandelson has announced an extension to the government's scrappage scheme.
In his speech to the Labour party conference in Brighton today, Mandelson said the scheme will be granted an extension to cover 100,000 more cars and light commercial vehicles.
Mandelson also warned that the support for the still-fragile motor industry was not bottomless, saying "we cannot do everything but that does not mean doing nothing".
He was also cautious about the prospect of a motor industry recovery: "There are encouraging signs that the economy is picking up. But recovery remains fragile and uncertain, especially in manufacturing and one of its cornerstones, the car industry."
Mandelson has been under pressure for some time from the motor industry to extend the popular scheme, which was originally due to run until February next year or until 300,000 cars had been scrapped.