Loan deal 'safeguards Vauxhall jobs'

Business Secretary Lord Mandelson said an outline agreement yesterday followed detailed and "highly complex" talks between the Government and the United States-owned car maker.

Union leaders representing workers at Vauxhall plants in Luton and Ellesmere Port welcomed the announcement, saying it would safeguard jobs.

The guarantee will be provided under the Government's Automotive Assistance Programme and 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."

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.