UK Promises Cash to GM

The United Kingdom is ready to provide financial support to General Motors if the company is willing to maintain local operations and not cutting too deep into British workforce. Lord Mandelson told autocar.co.uk that GM is still holding negotiations with state representatives but a final decision is to be made after the manufacturer reveals its restructuring plan for Opel and its British counterpart, Vauxhall.

"Is Britain prepared to put up money?," he said. "Yes. But GM needs to have good news for Vauxhall in the UK if they are going to get tax payers money."

Nick Reilly, CEO or Opel and Vauxhall, met with union leaders on Wednesday and discussed the proposed job cuts across Europe. According to labor leader Klaus Franz, the US-based carmaker wants to cut most jobs in Germany, the country that often criticized its moves and backed Magna in a potential sale agreement.

As for the United Kingdom, GM might eliminate 354 jobs at the Luton plant that currently builds Renault Traffic and Opel Vivaro. On the other hand, the Ellesmere Port facility will remain untouched for the time begin.

One major issue is still the fate of the Antwerp plant in Belgium as the company is still unsure whether to keep it open or shut it down local operations. At this time, there are two options in discussion: whether to shut down operations entirely or to begin production of a small SUV and remove only 750 jobs.

Still, a final decision is yet to be made as the involved parties are still holding talks on the proposal.