Mandelson in first meeting with Vauxhall’s new owner

BUSINESS Secretary Lord Mandelson was meeting the new owner of car maker Vauxhall in Germany today in a bid to persuade them to protect UK jobs.

Canadian car part supplier Magna and its Russian partner Sberbank won the mandate to buy Vauxhall last month from its stricken US parent company General Motors.

The meeting this afternoon is the first between Lord Mandelson and Magna and comes amid fears that one of the Vauxhall plants – in Ellesmere Port and Luton – will be axed.

More than 2,000 people work at the Merseyside factory, which last year received a £9m grant from the North West Development Agency to produce a new Astra model there.

Reports say that in return for a commitment not to cut jobs Magna will want financial help from the Government. A figure of  £350m has been suggested.

Officials from the Canadian firm were at the two UK factories this week to begin analysing Vauxhall’s accounts. This due diligence process is set to take several months to complete.

Lord Mandelson said: “The Government is continuing to do all it can to secure the future of production at the Luton and Ellesmere Port plants. The UK Government is at the heart of the discussions on securing a commercial solution for GM Europe. I continue to fight for the best interests of all Vauxhall’s workforce in the UK.”