Mandelson call for GM swift action
Business Secretary Lord Mandelson has called for a swift conclusion to talks on the future of GM Europe - just as Fiat pulled out of the latest buy-out negotiations with the German government.
The move raised new questions about GM's fate and the impact on GM workers around Europe, including 5,000 employees at Vauxhall's Luton and Ellesmere Port plants.
Fiat insisted it was still an interested bidder in Germany's search for a buyer before the US parent group is forced to file for bankruptcy.
But the only other bidder sitting down to more talks in Berlin is the Canadian car parts maker Magna.
The new confusion increased a sense of urgency for parallel talks going on in Brussels between EU industry ministers, with Lord Mandelson represented by Trade Minister Gareth Thomas.
Lord Mandelson commented: "It is a very complicated set of negotiations, I think that before too long we will see an outcome to these negotiations, I certainly hope so, because it's a very uncertain time for car workers in Britain, and elsewhere in Europe. They want to know what the ownership of their company is going to be.
"I'm working closely with ministerial counterparts in Europe to bring these negotiations to a close as soon as possible."
Lord Mandelson said both bidders had given assurances that they would continue production by Vauxhall in the UK.
"We have very good quality plants, and workforce, with very high production, and the last thing General Motors in Europe wants for its future is to dispense with or lose its most productive plants, and these include Vauxhall, in the UK.
"But we've got to get the ownership sorted out in the first place, and that's the subject of the continuing negotiations."
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