What are the car makers getting?
Lord Mandelson's announcement has cleared the way for car manufacturers and parts suppliers to access 1.3 billion of loans from the EU.
Tax payers' money has also been set aside to guarantee a further 1 billion of loans to the car industry.
Mandelson justified this by saying the cash will only be used to fund investment in eco-friendly vehicles.
However, widespread speculation suggests that any company able to demonstrate even minor cuts in emissions will be eligible for the money.
The insinuation is that the 'green' condition was inserted to rebuff criticism that pollution from cars is reason enough for the car industry not to receive support.
A further 100 million of funding was made available to support the training of employees.