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Fears remain for Vauxhall UK plants

Business Secretary Lord Mandelson has been given "categorical" assurances that Vauxhall production will continue in the UK when the firm's parent company is sold.

Mr Mandelson insisted the Government had been "very pro-active indeed" in a bid to save workers' jobs and was confident the ownership issue would be resolved "quite shortly".

The German government failed to name its preferred bidder for the European arm of beleaguered US giant General Motors (GM) after all-night talks featuring German chancellor Angela Merkel broke up without agreement.

The deadlock leaves Italian car giant Fiat and Canadian car parts maker Magna International as the two remaining bidders for the Vauxhall and Opel businesses.

Workers' union Unite accused the UK government of "not doing enough" to help the 5,500 workers employed by Vauxhall in Luton and Ellesmere Port.

But Lord Mandelson said: "The ownership issue has got to be resolved and I think that will be resolved quite shortly."

He said he had been working on the case "every day for the last three months" and added: "We've been very pro-active indeed."

Asked why the UK Government was not represented at the meeting, he said: "I don't think the German government would have welcomed my presence at a table in which they were being asked to bail out their own German division of General Motors.

"Where we have an interest, and it's a very big interest indeed, is in ensuring that when the ownership of General Motors changes, as it will do, that there is a continuing and firm commitment to Vauxhall production here in the UK.

"And I have received assurances from all those involved in the negotiations that there will be a continuing commitment to Vauxhall and its workforce in the UK.

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