LONDON (ShareCast) - Lord Mandelson said the government may provide loans or loan guarantees in order to secure the future of Vauxhall.
"We are prepared to financially underwrite that deal," Mandelson told reporters.
Mandelson made
the comments at GM (NYSE:
GM -
news) 's Vauxhall van-making plant in Luton today where he met unions and Vauxhall workers. He reiterated the Government's commitment to continued Vauxhall production in the UK.
Magna International, which is looking to buy GM's European Unit that includes Vauxhall, could be offered a loan to make sure it keeps the Vauxhall plants.
"I want workers at both Luton and Ellesmere Port to know that we are doing everything possible to secure a long term commercial future for Vauxhall," said Mandelson.
"I and my officials are in constant contact with the US and German governments, GM US and GM Europe and others to ensure Britain's interests are fully represented. We also continue to have detailed discussions with Magna and other interested parties," he added.
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