Hopes for Vauxhall
Updated on 29 May 2009
Canadian-Austrian car parts maker Magna International has reportedly reached a tentative deal to rescue GM Europe, owner of Vauxhall.
Five thousand British carmaking jobs depend on it - tonight an initial rescue deal for GM Europe - which owns Vauxhall and Opel - is on the verge of agreement.
Along with the US government, the new owners, the Canadian car parts maker Magna and its Russian banking partner, have offered to provide short term funding.
The Business secretary Lord Mandelson said he had been seeking confirmation as soon as possible, that no Vauxhall jobs would be lost in the UK.
Earlier in the day, the future of Vauxhall, which employs 5,500 UK workers and has plants in Luton and Ellesmere Port, seemed uncertain after strong bidder Italian car maker Fiat pulled our of the take-over negotiations with the German government.
An agreement between Magna and GM Europe would guarantee there are less job cuts than the proposed cuts by other bidders, reports said. But Magna still needs to obtain clearance from the German government.
