UNIONS are preparing for a fresh round of negotiations to secure the future of Vauxhall car workers’ jobs in Ellesmere Port following the dramatic decision by the firm’s owners not to sell its European business.

The General Motors board decided after a six-hour meeting in Detroit to scrap plans to sell its Opel and Vauxhall brands to Canadian firm Magna – a deal which had threatened thousands of jobs across Europe.

President and chief executive Fritz Henderson said the decision to keep Vauxhall followed a more benign business environment in Europe and GM’s improved financial health.

While the decision was greeted with cautious optimism by some of the 5,500 workers employed by Vauxhall in the UK, mainly at Ellesmere Port (2,200 staff) and Luton, it sparked anger in Germany.

Analysts predictions that two German plants could now close became closer to reality after GM confirmed last night it would axe 10,000 jobs across Europe.

German workers will begin walk-outs from today in protest at GM’s decision, while the German Government denounced the car giant’s behaviour as “totally unacceptable”.

Workers across Europe were concerned that Magna’s takeover would give an unfair advantage to Opel’s vast workforce in Germany, as their government was willing to give loans worth £4bn.

Business Secretary Lord Mandelson said the decision was a “major U-turn”, adding: “I am keen for very early discussions with GM over their plans for the business, and how they will affect British plants and workers.”

Unite general secretary Tony Woodley was also upbeat that it was good news for UK workers.

He said: “This is an incredible turnaround from General Motors. I am absolutely delighted.

“It is fantastic news for the UK and right that GM does not break up its family and instead retains ownership of Vauxhall. The problems for GM were rooted in the US, not in the UK, where our plants restructured themselves years ago, becoming the best and most efficient in Europe.”