The European Commission has given Britain the go-ahead to grant £10 million ($US15.37 million) in regional subsidies to help General Motors modernise its Vauxhall Motors Ltd plant in Ellesmere Port, north-west England, Reuters reported.

Britain had said the aid would safeguard 771 jobs at Vauxhall Motors, which lost nearly £200 million last year, Reuters said.

According to Reuters, the Commission said it had doubts about the compatibility of the aid with rules for state aid to car manufacturers, so it had asked for comment but none were received from third parties.

GM has recently upgraded the plant to produce the new Vectra hatchback (sedans are built in Germany) as well as the Astra line.