UPDATE 1-Portugal rolls out loan, incentives for automakers

(Recasts with loan announced, adds prime minister's quotes)

LISBON, Dec 3 (Reuters) - Portugal's government on Wednesday announced a 200 million euro credit line for auto and car parts exporters as part of a support package to help the industry through a time of crisis and avoid job losses.

The package, agreed between the government and companies including Volkswagen AG (VOWG.DE) and Peugeot Citroen (PEUP.PA), also includes 70 million euros for training courses for some 10,000 employees and incentives aimed at boosting sales of new cars.

"This plan is to save jobs and boost the sector's ability to compete," Prime Minister Jose Socrates said in a presentation. "The government expects that these measures will be in force at the start of next year."

Economy Minister Manuel Pinho said that, including trade credit insurance of 300 million euros and the potential investments that the incentives should generate, the total value of the plan could amount to 900 million euros.

The state will use its own money as well as European Union cohesion funds to finance the package.

The association of auto industry producers has estimated a downturn in car sales during the financial crisis could lead to 12,000 job losses in Portugal in the first half of 2009.

U.S. automakers are pressing for a $34 billion government bailout to help them survive a collapse in sales. Combined U.S. sales slumped nearly 40 percent in November.

German carmakers' association VDA on Wednesday forecast the country's passenger car market would reach its lowest level since German reunification in 1990 and the decline would affect employment.

Volkswagen AG (VOWG.DE) has a big plant in Portugal -- Autoeuropa -- which produces more than 90,000 cars a year. Along with parts manufacturers, the sector employs nearly 60,000 people in Portugal.

Daily newspaper Diario Economico earlier quoted Helder Pedro, head of the Portuguese Automobile Association, as saying sales were expected to fall 11 percent in 2009. He criticised heavy taxation on cars in the country and said government measures were unlikely to reverse the situation.

(Reporting by Elisabete Tavares and Andrei Khalip; editing by John Stonestreet)