Darling promises car industry help

12 April 2012

Chancellor Alistair Darling has promised Government support for the car industry as 5,000 Vauxhall workers await a decision on their jobs.

But Mr Darling would give no guarantees to the troubled car maker's worried employees at factories in Luton and Ellesmere Port.

The board of General Motors (GM), the American company which owns Vauxhall, is due to consider competing bids to buy out the firm.

"We will do everything we possibly can to help because the car industry in this country is very very important not just in direct manufacture plants but also in the supply chain," Mr Darling said.

"At the moment though, Peter Mandelson has spoken to the Americans in Detroit. He's impressed on them our government is committed to help the industry and we shall be in constant touch with them to do everything we can to help people employed by Vauxhall.

"We are concerned that General Motors, which owns Opel and Vauxhall on the continent, make the right decision for the long term interests of the car industry in this country as well as in Europe," Mr Darling said.

Business Secretary Lord Mandelson has been lobbying GM to help save British jobs.

But the German government is backing a joint bid from Canadian car parts maker Magna and Russian bank Sberbank, offering almost £4 billion of finance. Berlin has championed the Magna bid because it has given guarantees not to shut down German plants.

British unions fear more of Vauxhall's UK workers will lose their jobs under Magna ownership than the rival bidder, Belgian finance firm RHJ.

Ministers will face criticism if the German government funds the saving of German car jobs while British ones are sacrificed.

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