Should the car makers be getting this aid?
The answer to this depends entirely on your point of view.
Mandelson has justified guaranteeing the money by saying that the car industry was 'in the frontline of the downturn' and had fallen 'faster and further than any other sector since the summer'.
'This industry is not a lame duck and this is not a bail-out,' he added.
The car makers are keen to press this line, pointing out that prior to the economic downturn they were part of a profitable industry, contributing significantly to the UK's economy.
They also say that, without any aid, they will lose the ability to lead the development of green technologies when the upturn arrives.
Opponents to the package say that the car industry should not be singled out for support, particularly when the companies are operating in a competitive market.
Opponents point out that other struggling industries have not received Government assistance resulting in high-profile casualties such as Woolworths.