Staveley Head

Staveley Head

June 02, 2009 04:31 ET

Not Before Time Mandelson Commits Help To Vauxhall

FLINT, UNITED KINGDOM--(Marketwire - June 2, 2009) - After much arm twisting from the unions Lord Mandelson has today committed the government to assist the economic plight of Vauxhall Motors.

Two days ago talks arranged by the German government to resolve the GM Europe crisis, a meeting at which the British Government was not represented, collapsed without agreement. However Lord Mandelson's representative, Trade Minister Gareth Thomas, will attend fresh talks starting today in Brussels between EU industry ministers.

And yesterday Business Secretary Lord Mandelson pledged hundreds of millions of pounds to ensure the safety of jobs at Vauxhall's plants in Ellesmere Port and Luton, saying that the funds are immediately available on request. The funding would be to underwrite loans to whoever buys the parent company, General Motors Europe.

A spokesman for Staveley Head, one of the country's leading motor trade insurance providers, who have been monitoring the situation closely, said

"This action from Lord Mandelson has come not a minute too soon. Until now the British government has lacked involvement in the negotiations concerning GM Europe, preferring to leave it to the German government whose main interest is the Opel plants. Many workers at the British Vauxhall plants feel that their views and feelings are not being properly represented and that they will lose out in any deal that is made with a prospective purchaser of the company."

The three original bidder, Italy's Fiat who have effectively now pulled out of negotiations, Canada's Magna and Belgium's RHJ were yesterday joined by a fourth interested part China's Beijing Automotive Industry Corporation.

Lord Mandelson stated "I have received assurances from all those involved in the negotiations that there will be a continuing commitment to Vauxhall and its workforce in the UK."

There is now urgency to reach agreement with a purchaser due to the American parent company of GM Europe failing to meet its restructuring deadline, and probably having no option other than to file for a Chapter 11 bankruptcy on 1st June.

Staveley Head is one of the UK's leading motortrade insurance brokers and will give you all the advice and assistance you need regarding this matter if you log onto their website at www.staveleyhead.co.uk. You can even take out cheap motor trade insurance on line.

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