The Jaguar car factory in Halewood Liverpool _320
BUSINESS Secretary Lord Mandelson has held talks with Germanys economics minister over the future of Vauxhall parent GM Europe and said the UK Government will play a key role in any decision about the carmakers future.
Italian giant Fiat wants to buy GM Europe to create one of the worlds biggest motor manufacturers.
Union leaders, including Merseyside-born Tony Woodley, have expressed alarm at the move and its possible effect on Vauxhalls workers, including 2,000 at Ellesmere Port. Fiat is reported to want to make £800m in cost savings if the deal goes ahead.
Meanwhile, Magna International, Canadas largest auto supplier, is in talks on the future of General Motors German Opel division. Lord Mandelson said any GM Europe buyer would have to speak to all affected governments, not just Germany where the bulk of the company is based.
Meanwhile parent firm GM, which is seeking a US state bailout, yesterday announced a £4bn loss for the first three months of the year.
