The UK car industry has received a cash boost to improve employees' training from the government.

Trade secretary Patricia Hewitt launched the automotive academy on Monday, which will award workers with a nationally accredited qualification, as well as establish an alumni programme to allow graduates to share new ideas.

The government has allocated £15 million to the scheme, which will have a central headquarters in the West Midlands and two "spokes" in the North East from October this year.

"The British motor industry is already world class. It is currently exporting record numbers of cars but in a fiercely competitive market we cannot afford to be complacent," said Hewitt.

"The sector can't compete on the global stage on the basis of low wages and nor should it want to. It must compete on the basis of new technologies, new processes and skills - all key strands of the government's manufacturing strategy.

"This academy will train the industry to have cutting edge skills to create cutting edge products.

"It has every chance of being a great success because it will take the best training that already exists, enhance it and then make it easier to access.

"The industry see this as the right approach rather than starting from scratch."

The initiative has the backing of employers and trade unions.

"This is extremely good news. The automotive industry is vital to the UK economy but we can only stay on top if we make sure that our people are trained to the highest standards to equip them for the future," said Christopher Macgowan, chief executive of the Society of Motor Manufacturers and Technology.

"The academy will act as a focal point for the very best in training and development. Everyone in the industry supports this initiative."

Dave Osborne of the Transport and General Workers Union said union leaders had called for greater training in the past.

"The TGWU have long pushed for a greater emphasis on training to help develop the skills base of the automotive industry," he said.

"This is a move to be applauded. We fully endorse the academy. It will lead to a more successful and prosperous automotive industry and that can only be good for our members."