Business secretary Lord Mandelson has pledged the Government's support in a deal to buy out struggling vanmaker Vauxhall.

Lord Mandelson toured the company's Luton plant, meeting union officials and management as negotiations continued with potential buyers of its parent company.

He said the Government would underwrite a deal for the sale of GM Europe, which includes Vauxhall in the UK and Opel in Germany, but refused to be drawn on what figures a deal would involve.

He said: "I have seen the performance record, I have seen the productivity, I have seen the safety and the lack of absenteeism.

"Unlike in the past when we saw Britain's carmakers and their unions frankly being part of the problem, it's very different now.

"Definitely here in Vauxhall they are part of the solution."

Canadian car parts manufacturer Magna, backed by Russia's state-owned Sberbank, was selected last month as the preferred bidder for GM Europe, which includes Vauxhall in the UK and Opel in Germany, but other companies are believed to have shown an interest.

China's Beijing Automotive Industry Corporation (BAIC) is reportedly putting together proposals, and its representatives are expected to meet Lord Mandelson in the coming weeks.

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