A loan guarantee of £270 million has been announced for Vauxhall and Opel to help preserve the future of the company's two manufacturing plants in the UK.
The guarantee will be provided under the Government’s Automotive Assistance Programme. The British loan guarantee will be provided alongside extra support from GM in the US and support from other European governments.
Lord Mandelson said: “I always said the Government would stand foursquare behind Vauxhall and with this announcement today we have kept our word. 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”.
Discussions will continue with GM and other European governments to finalise the remaining details of funding terms and arrangements enabling the implementation of the business plan.