Vauxhall UK production more assured

• Government gives loan guarantee
• Vauxhall still needs to find cash
• UK factories look safe

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Future production of Vauxhalls in the UK is more certain now that the Government has agreed to a £270 million loan guarantee.

GM Europe, owners of Vauxhall, should find it easier to secure a loan of this size now that the Government will cover repayments if the company gets into difficulty.

Business secretary Lord Mandelson said: 'I always said the Government would stand foursquare behind Vauxhall, and with this announcement we have kept our word.'

Mandelson described Vauxhall's UK factories in Luton and Ellesmere Port – where the new Astra will be built – as 'excellent plants employing a first-rate workforce'.

Final details and conditions of the guarantee remain to be finalised.