Sign in

(22)

---

The Government is seeking urgent talks with General Motors after the car giant's dramatic decision to scrap plans to sell Vauxhall, a move welcomed by union leaders in Luton and Ellesmere Port.

The GM board decided after a six-hour meeting in the US not to go ahead with the sale of its Opel and Vauxhall brands to Canadian car parts firm Magna - a deal which had threatened thousands of jobs across Europe, including 5,500 in the UK.

President and chief executive Fritz Henderson said the decision to keep Vauxhall followed a more benign business environment in Europe and GM's improved financial health.

Workers arriving at the Luton and Ellesmere Port and Luton plants expressed "cautious optimism" that the U-turn would be better for the long-term security of their jobs.

Tony Woodley, joint leader of the Unite union, and a former Vauxhall worker, said the move was a "fantastic decision", adding: "There's no logic in breaking up the company. I believe it is the right decision in spite of a good deal that we'd struck with Magna.

"It is the best decision for Britain and our plants. I am absolutely delighted that General Motors have finally done the right thing for them and for us."

(22)