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Loan handed to GM to protect Vauxhall's UK operations

Published on 16 Mar 2010 under category: legal

Vauxhall's British operations have been afforded bankruptcy protection after General Motors (GM), the manufacturer's parent company, was handed a £270 million loan from the government.

Lord Mandelson, the business secretary, outlined the details of the loan following the resolution of "highly complex" talks between his department and the US car giant.

Describing the plans as "excellent", Lord Mandelson said it is imperative that Vauxhall's UK operations stay afloat "as part of Britain's automotive manufacturing base".

"Following our negotiations with GM Europe I am confident it will do so," he commented.

Approximately 5,000 people are employed by Vauxhall in the UK, almost half of which are based at Ellesmere Port on Merseyside. Nearly 1,500 are based in Luton, where hundreds of jobs are expected to go as the company tightens its purse strings.

General Motors employs approximately 30,000 people, either directly or indirectly, in Britain.

Vauxhall is keen to achieve bankruptcy protection owing to its proud history. Founded in London, the company celebrated its centenary in 2003.

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