Government considers role in Vauxhall bail out

The Government says it would consider underwriting the planned takeover of General Motors’ European operations in a bid to save jobs in the UK’s Vauxhall plants.

Vauxhall

In a visit to Vauxhall’s Luton factory today (July 3), Business Secretary Lord Mandelson told reporters that the bail out “may involve loans or loan guarantees”.

It comes as the Government continues to face calls to ensure jobs at UK jobs are not lost once it is sold.

There are up to 5,000 workers in Vauxhall factories in Ellesmere Port, Cheshire and Luton.

Magna International, the Canadian auto parts company, is the frontrunner to take over GM Europe’s Vauxhall and Opel operations. The bid is being backed by Russia’s state-owned Sberbank.

Magna has offered €700m (£610m) for a 55% stake. However, the deal is contingent on due diligence of GM Europe.

Lord Mandelson says that a business proposal from Magna is expected to be released within the next two weeks.

US parent company General Motors for its part has filed for chapter 11 bankruptcy protection in what has become the biggest corporate failure in the country’s history.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here