Vauxhall £270m loan
March 12th, 2010 by Richard Aucock
BUSINESS secretary Lord Mandelson has revealed details of a £270m loan that will ‘help secure’ Vauxhall.
The loan package to GME Europe is being made under the Government’s Automotive Assistance Programme.
GME needs the money to secure longer-term investment. A recent guarantee of €1.9bn from GM has, Car Dealer Magazine, ensured the company has the cash to survive until 2012.
European Governments are being asked to stump up the rest of the required near-€4bn total – and it is the UK’s £270m (€300m) contribution that Mandelson has revealed today.
‘I always said the Government would stand foursquare behind Vauxhall and with this announcement today we have kept our word,’ he said. ‘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.
Tags: GM, government, mandelson, Vauxhall