Currently reading: Vauxhall's £270m loan guarantee
British government provides loan guarantee to General Motors Europe

The British government has confirmed it will provide General Motors Europe with a £270 million loan guarantee to help secure the future of Vauxhall in Britain.

Announcing the loan guarantee, business secretary Lord Mandelson said the money would provide extra security to Vauxhall workers at its Ellesmere Port and Luton factories.

“I always said the Government would stand foursquare behind Vauxhall and with this announcement today we have kept our word,” he said. “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.”

GM had originally planned to sell Opel/Vauxhall to Canadian parts supplier Magna, but it reversed this decision late last year, instead deciding to invest an extra 1.9 billion euro (£1.7bn) in the firm.

To do this, however, it needs a further 2.0bn euro (£1.8bn) from governments across Europe have GM factories within them, 60 per cent of which is being requested from Germany. Britain is the first government that has provided a loan guarentee.

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Uncle Mellow 14 March 2010

Re: Vauxhall's £270m loan guarantee

Mandelson has promised them £270 million. That does not mean they are going to get £270 million , it means there is an election coming and most voters will not realise that the EU may try to block any such loan.

val. 14 March 2010

Re: Vauxhall's £270m loan guarantee

phildub wrote:
Id rather they spent that money on repairing the pothole that i have to dodge on my way to work

I could not agree more, where I live ther are 670 potholes in 1 km. of road, some of them are 1/2m deep, but then I don't live in the UK.
zthomasz 13 March 2010

Re: Vauxhall's £270m loan guarantee

kdwilcox wrote:
Jaguar by the way only wanted a loan

It gets worse. Jaguar Land Rover actually only wanted loan guaruntees for a loan from the european investment bank and Mr Mandelson still wouldn't give it to them.