The government’s £2.3bn automotive bailout for UK car manufacturers has been met with skepticism by recruiters who question whether the money will increase production.

Maxine Waring, managing consultant, Wots Street Employment, told Recruiter, she was unsure whether it would have any affect.

“Even if we bail out the manufacturers, can we actually afford to buy them? It will keep people in jobs, but are we greasing the wheels at the right end?”

Greg Latham, managing director, Encore Personnel, told Recruiter: “I would suggest that there’s no point in adding further money to the industry if people aren’t buying the cars - until people start buying the cars they aren’t going to increase production.”

Car manufacturers support 200,000 people directly and a further 640,000 indirectly, according to The Times, and recruiters say related redundancies by second-tier suppliers have hit business.

“The automotive sector is stagnant. It’s not just the first tier manufactures, but a whole host of second ties suppliers,” said Latham, adding the company had experienced several bad debts from second-tier manufacturers.