THREE North-East vehicle parts firms will share millions of pounds of Government funding to address skills shortages and strengthen the UK automotive industry.

Ministers say Nifco UK, in Eaglescliffe, near Stockton, Gestamp, in Newton Aycliffe, County Durham, and Unipres, in Sunderland, will receive backing.

Business Secretary Vince Cable revealed the trio were on a list of businesses that will get £5.4m Government-industry investment to win and keep work with large vehicle manufacturers.

That figure includes a £2.7m Government investment from the Employer Ownership Fund automotive supply chain competition, which is matched by firms.

Other companies on the Government’s list were based in Coventry, Corby, in Northamptonshire, and Halewood, Liverpool.

Nifco UK makes plastic components from door handles to bumper brackets for Nissan, Ford and Honda, while Gestamp makes chassis components for Nissan, Volvo, Ford and Jaguar.

Unipres makes parts that form the internal structures of cars.

Dr Cable said: ““Through our industrial strategy we are working in partnership with the automotive sector as it goes from strength to strength.

“Our new funding will build on this progress and help to lock in sustainable growth in the supply chain.

“On average only a third of parts going into vehicles manufactured here are sourced from the UK.

“With a potential £3bn in opportunities identified for UK-based vehicle and engine manufacturers, we need to strengthen our supply chain to take advantage of this opportunity.”

Dr Cable added a further £10m of Government money will be made available in a new funding round.