
Ex-trade minister Lord Digby Jones has called for special measures to help rescue the motor industry.
The former CBI chief, from Warwickshire, said the green shoots of a recovery would appear only if steps were taken now.
Warwickshire-based Jaguar Land Rover recently announced it was cutting 450 staff.
Business Secretary Lord Mandelson has warned that the government does not have an "open chequebook".
Lord Jones said: "[The government] should be really cracking the whip with the banks to get the money into the system to enable the things to be bought.
"Secondly, something they're not doing, is I'm really worried that when this all comes about and the green shoots will come in about a year or so's time, the skills base in the West Midlands will have gone away."