Fritz Henderson, president and chief executive of General Motors, said: “We understand the complexity and length of this issue has been draining for all involved.

“However, from the outset, our goal has been to secure the best long-term solution for our customers, employees, suppliers and dealers, which is reflected in the decision reached today.

“This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”

An agreement reached with the Union and Unite was reached recently to remove uncertainty surrounding the 5,500 workers at the Ellesmere Port and Luton factories.

Both plants were given job security and a future through to 2013.

The deal with Magna had been backed by Business Secretary Lord Mandelson.

A Department for Business spokesman said: “We have noted GM’s announcement today and want to work closely with GM to understand their plan for the business and what it means for the UK.

“We have always said that, if the right long-term sustainable solution is identified, then the Government would be willing to provide funding to this.”