Production stopped: Gloomy mood as workers arrive at MG Rover's Longbridge plant Friday.

The British government has agreed to provide emergency funding to collapsed car group MG Rover to prevent immediate lay-offs of its 6,000 workers.

"There will be no redundancies at Longbridge tomorrow (Monday)," UK Trade and Industry Secretary Patricia Hewitt said on Sunday.

The government will provide a ￡6.5 million loan to the company to cover wages and expenses for one week.

"The government has agreed to provide the necessary funds to the administrator in order to avoid the issuing of redundancy notices at MG Rover while efforts are made to keep the business together," Hewitt said.

Britain's last major carmaker collapsed on Friday after it failed to agree to a rescue deal with China's Shanghai Automotive Industry Corp (SIAC).

The crisis at Rover threatens around 15,000 jobs among its suppliers, on top of the 6,000 employed at its Longbridge plant in the English Midlands, creating a political headache for the British government ahead of a general election on May 5.

The provision of emergency funding came after a day of talks between Hewitt, trade unions and the administrators appointed to run the company following its collapse.

"The government has agreed to assist and work with the administrator and with the unions who will be developing, with all reasonable speed, a realistic business proposition for SIAC and other possible purchasers to consider," Hewitt added.

Staff at Longbridge will attend a mass meeting on Monday addressed by union leaders to hear more about the attempt to rescue the company and lift it out of administration.

Hewitt last week announced a ￡40 million support package for Rover's suppliers.

(CNN)

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