The Government is due to announce an extension to the car scrappage scheme following calls from industry for extra measures to boost manufacturing.
Ministers allocated £300 million earlier this year for the scheme under which motorists receive a £2,000 discount when they trade in older cars for new models.
The money is expected to run out within weeks, prompting pressure from groups including the Society of Motor Manufacturers and Traders for an extension.
Business Secretary Lord Mandelson is to announce to Labour's annual conference in Brighton that the scheme will be extended.
The move will delight car makers and unions who have been pressing ministers for weeks to allocate more money to the scheme.
It is understood that an extra £100,000 is going to be allocated by the Government towards the scheme, which analysts believe will extend the programme by several weeks.
It is also understood vans will be able to be traded in after eight years rather than the current 10 years.
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