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Negotiations over the sale of Vauxhall and Opel broke down last night after parent company GM made a last-minute request for an emergency loan of 300 million Euros (£260m).

GM, which faces a June 1 deadline to restructure itself or file for bankruptcy, had been in talks with the German government, when it made the unexpected cash request.

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Images on the news this morning of the German Government in late night talks with GM management and unions, was in stark contrast to the UK Government's on-going bungled handling of the JLR predicament.

Apparently, Peter Mandleson (I absolutely refuse to call him 'Lord') did go out of his way to make a phone call to Germany to plead the case for the UK, so all those Vauxhall workers should be grateful I guess. What a bunch of complete idiots we have in charge of our futures.     

I just had to laugh when I saw Mandlesons earnest face on TV yesterday, explaining to Jon Snow that there was nothing to be done until the sale went through, and at that time he would be prepared to 'consider' requests for UK govt support from the new owners. Too little, too late - as usual. We really are the poor relation in Europe, however we, and our pompous politicians, may like to think of ourselves.

I didn't quite laugh at Mandy when he appeared on Ch4 news, I did throw stuff at the telly though. Natural reaction to his slimy lying git face really. He has proven himself (yet again) to be utterly inept with the handling of this, as well as the whole JLR loan fiasco. And the requests, I'm sure, would be considered by the present government for about 2 seconds flat before the new owners were told where to go. They really couldn't give any less of a flying **** about the jobs at stake.

rbrown89:

I didn't quite laugh at Mandy when he appeared on Ch4 news, I did throw stuff at the telly though. Natural reaction to his slimy lying git face really. He has proven himself (yet again) to be utterly inept with the handling of this, as well as the whole JLR loan fiasco. And the requests, I'm sure, would be considered by the present government for about 2 seconds flat before the new owners were told where to go. They really couldn't give any less of a flying **** about the jobs at stake.

Yes, I'm so glad that our current incumbent numpties in No. 10 brought Mandy back in to help out the UK in our hour of need. His own philosophy and demeanour seems to portray almost exactly the level of care our current government has over these issues - a slimy token gesture and nothing more. Bring on the next election.  

I guess I don’t understand the need for a loan if you are selling the company; just add the amount to the asking price. The sooner GM gets out of Europe the better.

I haven't seen GM profits figures reported for a few years but it always seemed that GM Usa made huge losses, GM europe might make a small profit and GM Britain bailed-out the whole business.

Does anyone know the figures for the last few years ?

The British gov't has no money to lend Vauxhall because your MP's have stolen it all with their inflated living expenses that you poor taxpayers have to pay for.  Brown is disgraceful and he and his gov't are non players on the world stage, ignored by everyone.

scubascooby:

I haven't seen GM profits figures reported for a few years but it always seemed that GM Usa made huge losses, GM europe might make a small profit and GM Britain bailed-out the whole business.

You act like they are independent companies, it’s all GM. GM is an American owned company who makes all decisions regarding product whether it be Opel or Vauxhall which are American owned companies that employ British and German and other European  people. For better or worse GM (an American company) makes the final call until someone steps up and buys the European assets. The biggest problem the UK has is the illusion that foreign car manufacturers that take up residence there are somehow British. What needs to happen is for some British investors to buy Vauxhall. With some help in the form of generous tax breaks for the business and people who purchase Vauxhalls they just might make a go of it. At least then the UK could control its own automotive destiny; there is a chance for opportunity here with the right kind of thinking. The alternative is to accept the delusional concept that auto manufacturing in the UK is just not feasible.

frankpcb:

The British gov't has no money to lend Vauxhall because your MP's have stolen it all with their inflated living expenses that you poor taxpayers have to pay for.  Brown is disgraceful and he and his gov't are non players on the world stage, ignored by everyone.

Why should the British government lend money to an American company, there is either a business case to build cars in the UK or there is not. Somebody voted the politicians into office and it is easy to point the finger of blame, what is not so easy is to suggest solutions that might work. Frankpcb, if I am not mistaken you and I are from the U.S., so glass houses my friend, we have our own crosses to bear when it comes to government.

I know this will not be a popularist view, but if you listened to what he actually said you would be much clearer in the case of TATA (Jaguar) and Vauxhall.  He has stated that money is on the table, right now you cannot push money any where as you right now do not know which way its going to move.  The ownership deal (which is what he said) needs to be there in principle and for that you have to wait.  Then at that point of the deal you know the detail and you have a framework on which to base talks.

Vauxhall is a commercial transaction not a government transaction no matter what anyone says.  As for TATA (Jaguar), the TATA group has money and as has been shown, the UK gov. (and quite rightly so) said if we underwrite you money we want some sort of guarentee (that is nornal business) and quite right too; TATA all of a sudden then sells some shares and starts funding JLR itself; well then why did it need the money? This is business not some lucky dip lottery shop.

Some of you people on here make me laugh; first you want the government to be strong, then you want it to look after the UK, then you want it to throw money into stuff without looking after the UK, then you want it to support only your pet projects at the expense of other sectors, then you slag it off for supporting the one sector (the banks that are needed by everyone); there are so many double standards in your comments its untrue; you want to try reading what some of you guys write; some of you write utter pants.

Wyndham:

The ownership deal (which is what he said) needs to be there in principle and for that you have to wait. 

And while he waits for the 'ownership deal' to be announced, the German government are right there, right now, in hard negotiation, influencing its outcome. If he really wants to save British jobs, he really needs to get in there right now and start influencing. Regrettably, that would be like Richard Branson inviting his receptionist into a board meeting to discuss a bid for BA. It just isn't going to happen. We all know it. Some of us find it hard to accept.