Vauxhall To Receive GBP270m Government Loan

Wed, 17 Mar 2010

The Government has announced a £270m loan guarantee to General Motors to help secure the future of Vauxhall, its UK operation.

Business secretary Lord Mandelson said the finance package for General Motors Europe (GME) is being made under the Government’s Automotive Assistance Programme and comes after "highly complex" talks between the Government and the US car giant.

"I always said the Government would stand foursquare behind Vauxhall and with this announcement today we have kept our word," he commented. "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," he commented.

Vauxhall is the UK arm of General Motors and employs around 4,700 people across the country, including more than 2,000 at its Ellesmere Port plant and almost 1,500 at its Luton plant.

Tony Woodley, joint leader of the Unite union, 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."
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