General Motors has raised hopes that fewer jobs will be cut than originally feared at its Vauxhall factories in the UK.
Nick Reilly, GM's head of international operations, met business secretary Lord Mandelson and representatives of the Unite union yesterday to discuss the company's plans, which still include axing up to 10,000 jobs across Europe.
Fewer job cuts than expected in UK
Mr Reilly said he believed there could be a 'significant reduction' in the 800 job cuts that were threatened under earlier plans from Magna, which had been expected to take control of Vauxhall and Opel.
Lord Mandelson said that Britain would be prepared to underwrite GM's restructuring plan, which GM wants to implement by the end of the year.
GM had originally agreed to sell Vauxhall/Opel to Canadian car parts company Magna, but in light of an improved business environment has decided to keep them.