VAUXHALL owner General Motors has confirmed to US regulators that there is still “substantial doubt” over its ability to continue as a going concern.

The US group warned that unless it wins US government backing and succeeds in stemming its losses, it may be forced to file for bankruptcy.

The group, which employs more than 2,000 people at its Vauxhall plant, in Ellesmere Port, wants £21bn of US government support to see it through the downturn.

Shadow Business Secretary Ken Clarke, who visited the plant yesterday, said: “The situation is extremely serious at Vauxhall. They have been in touch with government for several months now. Since receiving training grants two years ago, they have received no help.

“All of the government’s policy announcements have so far not been translated into positive support and companies are still learning how to apply for the loan guarantees which are being offered.”

The company has created a Viability Plan to secure its future and help it pay off government loans and return to profitability. That restructuring plan also depends on the world car market starting to recover next year.