British labor unions assailed the government's $3.5 billion rescue plan for the mostly foreign-owned U.K. auto industry as inadequate and a 'massive disappointment.' One opposition politician branded it 'pretty small beer.'

At issue are the terms and scope of the deal, which the government insisted is 'not a bailout.' The agreement comes in the form of loan guarantees, half of which will support loans from the European Investment Bank, and are aimed primarily at vehicle manufacturers and suppliers investing in 'green' research and development.

At least one British car company, Group Lotus, which is owned by Malaysia's Proton, responded favorably, saying it 'welcomes the government's investment boost.' Lotus has emerged as a leader in developing green technologies for the auto industry.

Virtually all of Britain's once-independent automakers are now owned or controlled by foreign companies, among them Jaguar Land Rover by India's Tata Motors, MG Rover by China's Shanghai Motors and Aston Martin by a consortium of Kuwaiti and British investors. General Motors owns Vauxhall, and Ford owns Ford of Britain.