A CAR union leader has called on European Governments to back Vauxhall owner General Motors (GM) after the car group trebled its investment in its revamped European business.

Opel/Vauxhall chief executive, and former Ellesmere Port plant director, Nick Reilly, announced at yesterday’s Geneva Motor Show that GM will provide £1.7bn towards the £3.3bn cost of rebuilding the European division after GM pulled out of its proposed sale to Canadian car parts maker Magna last November.

GM’s recovery plan includes plant closures and 8,300 job losses, although its Ellesmere Port site, which employs 2,000 staff making the new Astra, has so far escaped cutbacks.

The UK and Spanish Governments support GM’s plan but Germany, which will feel the brunt of the job losses, has balked at GM’s proposals and is yet to commit to funding.

However, Dave Osborne, Unite the Union’s chief car industry negotiator, welcomed GM’s increased investment, saying: “It’s a demonstration of the confidence they have in the new business and bringing GM Europe back to a viable future.

“They would not be investing that kind of money if they didn’t think they had a viable plan, and we think the governments of the respective countries should support the new business plan.

“After all, if they were prepared to support the Magna plan, there is no reason why they should not support the GM plan.”

Announcing the increased investment at yesterday’s Geneva Motor Show, Mr Reilly said it showed the commitment to GM Europe by the US board which is desperately trying to turn round the beleaguered North American business after an injection of billions of US and Canadian taxpayers’ dollars.

“We greatly value the much increased support from GM, particularly given the high-priority demands on their liquidity, not least the restructuring of GM’s North American operations and coping with a continuously weak market in North America.”

And referring to the total funding package, he added: “We hope that our strong commitment will be well received as a major milestone in our ongoing discussions about Government guarantees to cover the remaining gap.”

John Fetherstone, union convenor at the Ellesmere Port Vauxhall plant, said: “It is good that GM are showing the colour of their money and the confidence in their plan.

“We believe their plans are going to move forward now.”