Vauxhall is "in terrible trouble" according to the Business Secretary Peter Mandelson.
Lord Mandelson's comment comes as UK based carmakers put pressure on the Government to access £2.3 billion worth of support, originally announced by Westminster in January, reports The Telegraph.
Vauxhall, which is owned by General Motors, and the Government are due to come face to face at a seminar on Wednesday to discuss the details of how the £2.3 billion loan guarantee scheme will be shared out.
Workers at Vauxhall's Ellesmere Port and Luton sites will be anxiously waiting for the outcome after GM's senior European executive Carl-Peter Foster said the carmakers's UK factories may close if it does not get Government money.
Meanwhile Lord Mandelson said he plans to work with Germany, where most of the 55,000 workers of GM's European arm are based, to try and save this part of the company.
GM Europe is seeking £3 billion from European Governments in order to survive.