UK business secretary Lord Mandelson has been given “categorical assurances” that Vauxhall production will continue in the UK.
However, bidders for General Motors’ European division which includes Opel and Vauxhall have said they will need to cut at least 10,000 jobs across the company which puts at least some of the 5,500 British jobs in jeopardy.
Mandelson said: "Vauxhall's production in the UK is a main revenue and profit stream for GM. There is no question of GM wanting to dispense with it.”
Despite Mandelson’s confidence over securing UK production with Vauxhall he did admit that there would be some job losses in the UK and that there would be “reorganisation and restructuring”.
A decision on who the preferred bidder for Vauxhall and Opel is expected soon. The four bidders vying for the business are Fiat, Canadian car parts maker Magna, Brussels-based investment firm RHJ International, and the Beijing Automotive Industry Corporation.