Lord help us!
Friday 13 November 2009 | By Shane SelbyBack to Newsroom
The Government has pledged financial assistance to secure the future of Vauxhall, The Times reports.
According to the broadsheet, Business Secretary, Lord Mandelson is willing to give taxpayers' money to parent company GM in exchange for guaranteeing the long-term future of Vauxhall. Car giant GM is still in negotiations with potential buyers and the UK and German governments over the sale of its European operations, Opel and Vauxhall.
Early this week it emerged that GM was considering abandoning plans to sell Opel/Vauxhall as the car giant's financial condition stabilises however nothing has yet been confirmed and offers from Canadian car-parts maker, Magna and investment company RHJ International remain on the table. The German government favours the bid from Magna and have already pledged financial assistance, should GM choose the Canadian company. However Magna have publically declared they would cut jobs within the European operations and fears for Vauxhall workers have been raised.
The Business Secretary is prepared to pledge financial help — believed to be up to £500 million — to whichever of the interested parties offers the most viable commercial future for the carmaker in Britain, and its 5,500 UK jobs.
