VAUXHALL owner General Motors has raised hopes that there could be a “significant reduction” in the number of jobs cut as it restructures its UK plants.

Yesterday, the Daily Post reported that GM president and chief executive Fritz Henderson called the company’s Ellesmere Port plant, which employs 2,000 people, “a leader in Europe”.

Now Nick Reilly, a senior official of the US carmaker and former Ellesmere Port plant manager, says he believes there is scope for a “significant reduction” in the 800 job cuts in Cheshire and Luton that had been threatened earlier this year under GM’s restructuring plans.

Mr Reilly said he believed there was a good future for both UK factories.

The GM chief, a former plant manager at both UK factories, is touring European countries to discuss the firm’s plans for the future, which will be finalised within weeks.

Mr Reilly revealed GM was looking for around £3bn in loans from European governments to finance redundancies as well as restructuring.

He met leaders of Unite and business secretary Lord Mandelson, calling the meetings “positive”.