The decision to scrap the sale of Opel and Vauxhall to Magna has been met with mixed reaction across the industry.
Business secretary Lord Mandelson said he was planning urgent talks with Opel owner General Motors to find out what the u-turn meant for British workers.
“I am keen for very early discussions with GM over their plans for the business and how they will affect British plants and workers.
“I have always said that if the right long-term sustainable solution is identified, then the Government would be willing to support this.”
Tony Woodley, joint leader of the Unite union, welcomed the move. 'There's no logic in breaking up the company. I believe it is the right decision in spite of a good deal that we'd struck with Magna.
'It is the best decision for Britain and our plants. I am absolutely delighted that General Motors have finally done the right thing for them and for us.'
Unite's convenor at Ellesmere Port, John Featherstone, said unions would generally be happy to be dealing with GM, although hard times were still ahead.
'Detail is in short supply and we don't know what the immediate effect will be, but I am pleased we will be dealing with GM because we know them and we understand their culture - and they know us.
'I hope Lord Mandelson will now demand that GM gives us guarantees about future production.'