"Mandelson offers cash to secure Vauxhall jobs"

THE Government is willing to commit around £500m of taxpayers’ money to General Motors, in exchange for guaranteeing the long-term survival of Vauxhall, it was reported today.

According to The Times  Business Secretary Lord Mandelson is prepared to pledge financial help top support a viable commercial future for the carmaker in Britain, and its 5,000 jobs.

Just less than half of Vauxhall’s employees work at its Ellesmere Port factory, which is due to start production of a new Astra this autumn.

The board of General Motors (GM) is said to be split over whether to sell Opel, its European division which includes Vauxhall, or keep it.

Last week the board was expected to have chosen between two rivals bidders for Opel, Canadian group Magna or Belgian finance group RHJ International.

But no decision was taken amid reports that GM’s 13-member board was divided between those who were directors before GM almost went bust this year and those who were brought in after the US government bailed out the company.