Vauxhall workers await Berlin decision on bids for GM Europe

US parent GM will have the final say but the German government backing is crucial because GM would find it difficult to find a buyer without the loans.

The government's choice has huge implications for Vauxhall operations in the UK and the 5,000 employees in Luton and Ellesmere Port.

UK unions fear the German government will back a solution that will favour employment in Germany and Vauxhall could suffer as a result.

Opel has its headquarters in Germany and half its workers are employed there.

The four bidders

The four bidders named are Magna, RHJ International, Fiat and reportedly the Beijing Automotive Industry Corporation.

UK Business Secretary Lord Mandelson has warned that whoever is successful in bidding for GM Europe, Vauxhall will face cuts in the UK

He is reported to have held "substantial telephone conversations" with the bosses of Vauxhall's parent companies, including GM chief executive Fritz Henderson and GM Europe chief executive Carl Peter Forster.

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Brian McLean said:

	... UK Vauxhall employees perhaps can take comfort from Mr Forsters quote last November when he said that no European factories would close 'unless an asteroid hits the earth'and'the world stops tomorrow'
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May 27, 2009
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