UK Government to loan GM Europe 270 million euros

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Business Secretary Lord Mandelson has announced a 300 million euros loan guarantee to General Motors Europe which will help secure the company’s operations in Britain and the rest of Europe.

The outline agreement follows detailed and highly complex talks between the Government and GM.

The guarantee will be provided under the Government’s Automotive Assistance Programme. The British loan guarantee will be provided alongside extra support from GM in the US and support from other European governments.

Lord Mandelson said:

“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.

“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”.

Discussions will continue with GM and other European governments to finalise the remaining details of funding terms and arrangements enabling the implementation of the business plan.