British government confirms loan guarantee for Vauxhall
By Andrew C., 30 Aug, 2010. 0 Comments
British government has just confirmed the fact that it will provide General Motors Europe with a £270 million loan guarantee in order to help secure the future of Vauxhall in Britain.
This means that the money would provide extra security to Vauxhall workers from the Ellesmere Port and Luton factories. “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.” said business secretary Lord Mandelson. “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 added. For those who don’t know, GM planned to sell Opel/Vauxhall to Canadian parts supplier Magna, but decided to cancel the sale and to invest an extra 1.9 billion euro in the firm. GM needed 2 billion euro from governments across Europe in order to do this, 60%of which is being requested from Germany.
[via autocar]
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