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Sponsored by Michael R Peters
£270m government backing agreed for GM


Published on Friday 12 March 2010 17:00

Loan guarantee announced by Lord Mandelson

Business Secretary Lord Mandelson has announced a 270 million government loan guarantee to GM Europe to help secure the company's future.

The outline agreement follows detailed talks between the government and GM, which is in the process of restructuring its European operations.

More than 350 jobs are to go at Luton's GM van plant as a result.

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

Lord Mandelson said: "I always said the government would stand four-square 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."

Vauxhall chief executive Nick Reilly said: "We very much appreciate the support of Lord Mandelson and the British government which is a vote of confidence in Vauxhall, helping to sustain jobs and the excellent manufacturing operations we have in the UK."


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