GM has announced that it will continue to build the Meriva mini-minivan at its Zaragoza plant in Spain, when it is replaced with an all-new model in 2009, according to Reuters.

GM had threatened to move production to Poland, where costs are significantly lower.

The move would have resulted in the loss of around 5,000 jobs at Zaragoza, in the north-east of the country, and is a big coup for the government of Aragon, which had offered GM up to EUR30m in subsidies.