Mandelson holds Vauxhall rescue talks
Updated on 27 May 2009
Business Secretary Lord Mandelson has left the door open for the Government to help secure the future of car maker Vauxhall.
He is reported to have held "substantial telephone conversations" with the bosses of Vauxhall's parent companies, including Fritz Henderson, GM's chief executive, and Carl Peter Forster, chief executive of GM Europe.
Lord Mandelson's reported interest comes ahead of a pending decision by the German government to name a preferred bidder for GM's European arm Opel and Vauxhall.
Pressure to agree on a partner has grown ahead of a June 1 restructuring deadline for GM set by Washington, which could lead to a Chapter 11 bankruptcy filing by the firm.
The move will no doubt impact upon staff at Vauxhall's UK factories in Luton, Bedfordshire, and Ellesmere Port, Cheshire, which employ a combined total of around 5,000 people.
Fears have been expressed that the German government could pledge to protect domestic jobs, some 25,000 of them, at the expense of those in the UK.
Four entities are bidding to buy Opel and Vauxhall - Beijing Automotive Industry Corporation (BAIC), Italian car maker Fiat, Canadian car parts maker Magna and Brussels-based investor RHJ.
They are being pressed to make last-minute changes to their offers that could see the field being narrowed.
The sale of GM's European arm is part of the reorganisation of the US carmaker, which is battling to avoid bankruptcy.
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