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March 12, 2010

UK: GM Europe secures UK government loan guarantee

UK Business Secretary Lord Mandelson has announced an EUR300m loan guarantee to GM Europe which will help secure the company’s operations in Britain and the rest of Europe.

UK Business Secretary Lord Mandelson has announced an EUR300m loan guarantee to GM Europe which will help secure the company’s operations in Britain and the rest of Europe.

Today’s outline agreement follows detailed and highly complex talks between the UK government and GM.

The guarantee will be provided under the UK government’s Automotive Assistance Programme. The British loan guarantee will be provided alongside extra support from GM in the US and support from other European governments.

Lord Mandelson said: “I always said the Government would stand foursquare behind Vauxhall and with this announcement today we have kept our word. These are excellent plants employing a first rate workforce.

“We need Vauxhall to thrive as part of Britain’s automotive manufacturing base and following our negotiations with GM Europe I am confident it will do so”.

Discussions will continue with GM and other European governments to finalise the remaining details of funding terms and arrangements enabling the implementation of the business plan.

Opel/Vauxhall said it is very pleased with the announcement from the British Government that it has agreed to provide Opel/Vauxhall with the loan guarantee.

Nick Reilly, CEO of Opel/Vauxhall said, “We very much appreciate the support of Lord Mandelson and the British Government which is a vote of confidence in Vauxhall, helping to sustain jobs and the excellent manufacturing operations we have in the UK”.

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