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Government provides loan to GM Europe

Business Secretary Lord Mandelson has announced a £270 million loan guarantee to GM Europe to help secure the company’s operations in Britain and the rest of Europe.

The guarantee will be provided under the Government’s Automotive Assistance Programme.

The British loan guarantee will be provided alongside extra support from GM in the US and support from other European governments.

Lord Mandelson said: “I always said the Government would stand foursquare behind Vauxhall and with this announcement today we have kept our word.

“These are excellent plants employing a first rate workforce. We need Vauxhall to thrive as part of Britain's automotive manufacturing base and following our negotiations with GM Europe I am confident it will do so.”

Discussions will continue with GM and other European governments to finalise the remaining details of funding terms and arrangements enabling the implementation of the business plan.

Nick Reilly, chief executive officer of Opel/Vauxhall, said: "We very much appreciate the support of Lord Mandelson and the British Government which is a vote of confidence in Vauxhall, helping to sustain jobs and the excellent manufacturing operations we have in the UK."

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