UK government may step forward with funding for Vauxhall takeover

With the favoured bid for General Motors European operation under pressure, amid rumours that Canadian Magna Group is struggling to raise the required finance, it looks as though the UK government could finally step forward. When the initial deal appeared to have been signed and sealed, only to be revealed that nothing had been agreed, the UK government attracted significant criticism due to its relatively subdued attitude. However, this looks likely to change.



Vauxhall is part of the GM European operation and has a heavy presence in the UK, which the UK government are obviously keen to retain. In tandem with other European counterparts, it was believed that the UK government would act as a loan guarantor for finance although now it appears that the UK government could lend hundreds of millions of pounds to the Magna Group. While nothing has been agreed as yet, it does seem as though the UK government is becoming more proactive than reactive, something which many workers up and down the UK will be hoping continues.



We will monitor the situation with regards to GM Europe and the Vauxhall subsidiary and report accordingly in the future because at this moment in time everything is very much up in the air.