The German government's rescue fund committee has delayed a decision on whether to guarantee loans that would help secure Vauxhall/Opel's restructuring plan.
Vauxhall/Opel's £3.2 billion restructuring plan includes about £1.1bn of loan guarantees that are needed to help the company reduce European production and cut its workforce by 20 per cent.
Although a decision wa sexpected this week, Germany's Economics Minister Rainer Bruederle said a decision on loan guarantees would now not come until late May or early June.
Government officials are justifying the delay by saying Vauxhall/Opel is not in any danger of collapse. Vauxhall/Opel first requested aid 18 months ago.
The decision has prompted a backlash from workers' unions in Germany.
"While all other countries in Europe affected have long since decided (in favor of aid) for Opel, the German government economic policy is still spinning in circles," said Armin Schild, regional union boss from IG Metall Frankfurt.