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Government reasserts support for Vauxhall

The Government is insisting it will continue to work for the best possible future for Vauxhall’s Ellesmere Port and Luton plants after today’s announcement Magna would buy the firm and Opel from General Motors.

Under the deal, Canadian car parts maker Magna and Sberbank consortium’s bid for a 55% stake in Vauxhall and Opel.

A definitive agreement, of which union support will be critical, should be signed in the next few weeks.

The Minister for Business, Innovation and Skills, Pat McFadden told the BBC today: “Our objective now, as it has always been, is to ensure the best possible future for Ellesmere Port and Luton.”

He said the Government had not had a favourite amongst the bidders, that also included a Belgian conglomerate RHJ Holding which had increased its offer this month for Opel/Vauxhall by £22 million to £263m.

McFadden said he was not surprised Magna had won.

He also said Secretary of State for Business Lord Mandelson had been “in constant touch” with the GM board and Magna during the negotiations.
 

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