Mandelson backs Vauxhall as GM bids deadline closes

Mandelson told the BBC he was working hard to secure the future of Vauxhall's plants in Britain.

"We have to ensure that productive plants, where the greatest percentage of sales take place and which include UK Vauxhall plants, have a secure future," he said.

Three companies have submitted a bid to buy a stake in GM Europe, including Fiat, parts maker Magna and RHJ International, teh Brussels-based holding company.

Vauxhall and Opel dealers have reportedly said they are ready to invest Euros 500m in GM's European operations in return for a 10-15 per cent stake in the company once the Detroit giant finds a buyer for its subsidiary.

According to the Financial Times earlier this week Euroda, Vauxhall and Opel's European dealer association, is preparing to talk to the German government and potential bidders about its proposal which would be financed on a Euro 150 levy on every car sold over the next three years.

If the deal is accepted this would be the first time a dealer network has taken a stake in a car brand.

In the UK, Vauxhall employs 5,000 workers at Ellesmere Port and Luton.

The deadline for bids for GM's European business closed at midnight.

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