GM Europe deal reached – Optimism for Vauxhall

BBC Business News is reporting Business Secretary Lord Mandelson’s optimism that Vauxhall can be saved, as a deal to rescue GM’s European businesses has been reached.

Germany has agreed a deal with Canadian car parts maker Magna International to take over most of GM Europe, which owns Vauxhall and Germany-based Opel.

Vauxhall employs 5,500 people in the UK at plants in Ellesmere Port and Luton.

Lord Mandelson said that Magna had made it clear that they were committed to continued production in the UK.

He added that he would be seeking a meeting to “reinforce that commitment”.

Lord Mandelson was speaking after reports that Magna had reached an agreement in principle to rescue GM Europe.

“It looks as if GM in Europe can be saved, it can be turned around,” he told the BBC.

But he added: “Of course it will involve change, there is excess capacity.”

GM in the US is expected to declare Chapter 11 bankruptcy on Monday. Full story…