General Motors Europe receive public funding
Written By Richard Lawton Published On: Mar 12 2010Business Secretary Lord Mandelson announced today (Friday 12 March) a €300 million (£270m) loan guarantee to General Motors Europe (GME) which will help secure the company’s operations in Britain and the rest of Europe.
This agreement follows lengthy talks between the Government and the American car maker. The guarantee will be provided under the Government’s Automotive Assistance Programme, and is thought to be the first company to directly benefit from this high profile pot of money. 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.
General Motors has yet to confirm the finalised restructure plans for its European operations, however the manufacturer has confirmed that it’s Astra-producing Ellesmere Port plant is safe from the axe.
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