£270m loan boost for Vauxhall (From Haringey Independent)

£270m loan boost for Vauxhall

5:43pm Friday 12th March 2010 in

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

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

Union leaders representing workers at Vauxhall plants in Luton and Ellesmere Port welcomed the announcement, saying it would safeguard jobs.

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

Discussions will continue with GM and other European governments to finalise the remaining details of funding terms and arrangements enabling the implementation of the business plan.

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 that it has agreed to provide Opel/Vauxhall with a loan guarantee.

"This represents a strong vote of confidence in the UK automotive industry and, in particular, the contribution made by the Vauxhall brand and its manufacturing operations in the UK."