The European divisions of General Motors (GM) could collapse within weeks without a £3 billion bail-out from European governments, according to its chief financial officer Fritz Henderson.

But despite the stark warning casting a shadow over 300,000 jobs, GM insisted that Vauxhall’s UK factories at Ellesmere Port and Luton were safe under its new-look organisation.

The US giant gave up its stake in its European operations as part of its business plan presented to the US government in order to get funding for its own survival.

If and when European funding is secured, Opel and Vauxhall will still need to make savings of around £1 billion a year, closing up to three plants.