The UK government is prepared to make a “major investment” in Opel’s local unit Vauxhall, business secretary [minister] Lord Peter Mandelson said.

The government has consistently said financial assistance depends on a GM commitment that recognizes “the commercial logic of maintaining long-term production” in the UK. GM is yet to present a final plan.

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Mandelson signaled the support was likely, saying: “We have already said that we would be prepared to support Vauxhall to underwrite the new financial arrangements going forward.” He added that the government had funds for a major investment.

GM recently has sought financial support from European countries with Opel or Vauxhall plants as its European financing need totals around EUR3.3 bn (USD4.8 bn).

Opel/Vauxhall CEO Nick Reilly on Monday told employees the automaker would “lower our cost levels so that we can be profitable in a weaker market and we will use that profit to reinvest in new products, new technology and new facilities”.

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