Vauxhall UK production more assured
* Government gives loan guarantee * Vauxhall still needs to find cash * UK factories look safe...
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.