THERE may have been some cautious expressions of relief among staff at Vauxhall in Ellesmere Port and Luton yesterday at the news that parent company General Motors has decided not to sell up after all, but there was puzzlement in equal measure.

Have market conditions really improved that much, or are there deeper motives? Unions in Germany certainly think so, and have called a series of strikes in protest.

But, here in the UK, there has been a feeling that at least the unions are dealing with the devil they know, with the phrase being quoted over and over again yesterday.

That may well be the case, but it also means that both the unions and the Department of Trade and Industry will have to start talks all over again about the level of support that can be offered to Vauxhall, and the scale of any job cuts.

One theory is that the German government overplayed its hand while talking to would-be buyer Magna, and the support it was offering could have been declared to be anti-competitive. Hence the anguish on the part of German GM workers.

However things pan out over the next few weeks, the assertion that Ellesmere Port is one of the most efficient car plants within the General Motors empire in Europe still stands.

Most analysts seem to be quietly confident that Ellesmere Port does have a long-term future, with production of the new Astra now gearing up and the electric Ampera, based to a large extent on the Astra, looking a distinct future possibility.

But yesterday’s developments have still introduced a note of uncertainty, which needs to be sorted out as quickly as possible.