General Motors scraps plan to sell Vauxhall

Wed Nov 4 2009 10:01:13

General Motors has scrapped plans to sell off Vauxhall to a Canadian car parts firm.

A previously agreed takeover by Magna had threatened more than 10,500 jobs across Europe.

A spokesman for GM in the US said: "The board have decided to retain Vauxhall and move forward with restructuring the business."

Both the Unite union and GM UK declined to comment following the apparent U-turn by the US car-making giant.

The deal to sell off Opel and Vauxhall to Magna had the backing of the German government, which pledged 4.5 billion euros (£4 billion) of loans.

Unite recently announced an agreement with Magna in a bid to remove uncertainty surrounding the factories in Ellesmere Port and Luton, which employ around 5,500 workers.

The union's joint leader, Tony Woodley, said last month that both plants were given job security and a future through to 2013, providing a good basis for a long-term future beyond that.

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