Sunderland City Council leader Paul Watson has met city MPs after the car firm's 1,200 job-loss bombshell.

A response group – which includes the council, Business and Enterprise North East and Job Centre Plus and is led by regional development agency One NorthEast – has been set up to help staff find new jobs.

Coun Watson said: "There will be no stone unturned in finding ways to help.

"Nissan, as the most productive car plant in Europe, has some of the best – if not the very best – skilled manufacturing staff in the country so we can be hopeful that their skills are in demand.

"It is crucial that we continue to work closely with Nissan management team to identify how further help can be given to those who need it. This includes those who work in Nissan's supply."

Coun Watson also welcomed Business Secretary Lord Mandelson's pledge for widespread Government support to help laid-off staff.

Meanwhile, union bosses have said they hope to hammer out a redundancy package deal for Nissan workers as soon as possible.

Unite spokesman Dave Telford said the union was due to hold its first meeting with management at the plant on Friday afternoon and would be looking to pull together a deal quickly.

There are also reports today that Britain's troubled car industry may be offered taxpayer-backed loans to help manufacturers through the recession.

Coun Watson said it was up to the Government to tackle the global economic downturn – and he was confident Gordon Brown was the man for the job – but the response group would do all it could on the ground locally.

"The response group has a package of measures through Job Centre Plus, Learning and Skills Council and Business and Enterprise North East to help Nissan staff laid-off after the consultation period ends in early April," he said.

Washington West MP Sharon Hodgson added: "Nissan staff, because of their skills, can take some comfort that they're going to be first in the queue for many employers."

Plant boss Trevor Mann told the Echo last week the firm had been taken by surprise at the speed of the collapse in the European car market.

Thurday's announcement of job cuts came just six months after the factory introduced a third shift to deal with demand for the Qashqai.

The firm took on 800 staff to make the move to 24-hour working.