British government provides loan guarantee to General Motors Europe
12 March 2010

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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Comments
9

12 March 2010

How nice for Vauxhall to get £270m,may i ask,why did

Jaguar not get the money Mandelson said they would have,

what was it,£350m?

Jaguar by the way only wanted a loan,which they would

pay back.

12 March 2010

[quote kdwilcox]

How nice for Vauxhall to get £270m,may i ask,why did

Jaguar not get the money Mandelson said they would have,

[/quote] There wasn't an imminent election back when JLR wanted some cash.

12 March 2010

Dan;

Good point mate,i had forgot about that.

12 March 2010

While not wanting to get political, the below put an interesting perspective on things for me:

The next time you hear a politician use the Word 'billion' in a casual manner, think about whether you want the 'politicians' spending YOUR road tax money on other stuff.

A billion is a difficult number to comprehend, But one advertising agency did a good job of putting that figure into some perspective in one of it's releases.


A. A billion seconds ago it was 1959.

B. A billion minutes ago Jesus was alive.

C. A billion hours ago our ancestors werevLiving in the Stone Age.

D. A billion days ago no-one walked on the earth on two feet.

E. A billion Pounds ago was only 13 hours and 12 minutes, at the rate our government Is spending it.



Stamp Duty

Tobacco Tax

Corporate Income Tax

Income Tax

Council Tax

Unemployment Tax

Fishing License Tax

Petrol/Diesel Tax

Inheritance Tax

(tax on top of tax)

Alcohol Tax

V.A.T.

Marriage License Tax

Property Tax

Service charge taxes

Social Security Tax

Vehicle License Registration Tax

Vehicle Sales Tax

Workers Compensation Tax


Not one of these taxes existed 100 years ago... our nation was one of the most prosperous in the world, we had absolutely no national debt... we had the largest middle class in the world... and Mum stayed home to raise the kids.

13 March 2010

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

13 March 2010

Be fair, at least they're getting the hang of writing cheques with a value on them. This lot usually hand out blank cheques like confetti

13 March 2010

[quote kdwilcox]Jaguar by the way only wanted a loan[/quote]

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.

14 March 2010

[quote phildub]Id rather they spent that money on repairing the pothole that i have to dodge on my way to work[/quote]

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.

14 March 2010

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.

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