The Retail Motor Industry Federation (RMI) believes the move to set up a Modern Apprenticeship Taskforce will bolster the number of young people coming into the industry.
At present, the shortage of mechanics and bodyshop workers is resulting in higher pay. The concern in the fleet industry is those extra costs will be passed on to fleet customers.
Mike Allmond, managing director of the RMI's training division ReMIT, said: 'The Government says it is going to do something about training for young people and that can only be a good thing if it achieves the objective of getting younger people into training for the jobs which will appear in the retail motor industry in the near future.'
A spokesman for the Society of Motor Manufacturers and Traders said the announcement of investment in skill and training was welcome, but sounded a cautionary note, adding 'it will be important to ensure that they report quickly and that positive proposals are followed up'.