The U.K. unveiled credit funding worth 2.3 billion pounds ($3.2 billion) for its troubled auto industry to help it become greener, more innovative and more productive.

The support was offered as guarantees to unlock loans of up to 1.3 billion pounds from the European Investment Bank. Up to1 billion pounds in guarantees were also offered to support lending or loans where appropriate, said UK Business Secretary Peter Mandelson in the House of Lords, according to reports.

This is not a bail out, Mandelson added, saying that the UK's auto industry was in better conditions than France's or Sweden's according to the Agency France Press.

There is no blank cheque on offer, no operating subsidies. It will provide a significant boost to automotive companies, workers and suppliers with a significant boost and accelerate the pace of change in producing green, low carbon vehicles, he continued according to a report from the Financial Times.

There wasn't offered support today for the financing arms of the car companies which lack credit supply to finance car sales.

Auto industry Production slumped by nearly half in December according to recent data, AFP noted.