EUROPE’S industry ministers were holding emergency talks today amid growing concern about Germany’s handling of the attempt to sell off General Motors Europe.

The European Commission called today’s talks hoping to clarify German thinking following the failure of late-night talks in Berlin on Wednesday to secure a buyer for GM Europe.

A Commission spokesman said: “The aim of the meeting is to exchange information and ensure a level playing field for co-ordination.”

Only a fortnight ago, the Commission met GM bosses, car industry officials and ministers from 12 EU countries, including the UK.

Commission vice-president Gunter Verheugen spoke then about the need for any restructuring of GM Europe to “fully respect EU rules”.

The meeting agreed that “no national measures [to support GM Europe] should be taken without prior information and co-ordination with the Commission and other involved countries”.

Any state aid measures granted by German chancellor Angela Merkel would have to be approved.

Asked about fears the German government could give in to election-year pressure with a pledge to protect domestic jobs at the expense of those in the UK, Lord Mandelson said: “The reason why that is not going to happen is because Vauxhall’s production in the UK provides one of the main revenue and profit streams for GM Europe.

“There is no question of that simply being dispensed with.”

The sale of GM Europe is part of the reorganisation of its Detroit-based parent, which is battling to avoid bankruptcy. Pressure to agree on a partner is building ahead of a June 1 restructuring deadline for GM,set by the US government.