£270m loan deal to save Vauxhall

Published on Friday 12 March 2010 21:57

THE Government yesterday announced a £270 million loan guarantee to car giant General Motors to help secure its Vauxhall operations in Britain.

Business Secretary Lord Mandelson said the outline agreement followed "highly complex" talks between the Government and the United States-owned carmaker.

Union leaders representing workers at Vauxhall's UK plants welcomed the announcement, saying it would safeguard jobs.

The guarantee will be provided under the Government's Automotive Assistance Programme and will sit alongside extra support from GM in the US and backing from other European governments.

Lord Mandelson said: "I always said the Government would stand foursquare behind Vauxhall and with this announcement today we have kept our word. These are excellent plants employing a first-rate workforce.

"We need Vauxhall to thrive as part of Britain's automotive manufacturing base and, following our negotiations with GM Europe, I am confident it will do so."

Tony Woodley, joint leader of Unite, said: "This announcement is great news for British industry. The loan will help save thousands of jobs in Vauxhall's operations and in the 400 companies in its supply chain."

A company spokesman said: "Opel/Vauxhall is very pleased with the announcement from the British government."