UK Mandelson:"Pretty Likely" Magna,GM Shared Vauxhall Owners
May 29 2009 - 12:31PM
Dow Jones News
U.K. Business Secretary Peter Mandelson said Friday is it
"pretty likely" that Canadian car components maker Magna
International Inc. (MGA) and General Motors (GM) will become the
new shared owners of U.K.-based carmaker Vauxhall.
Speaking to BBC television, Mandelson said he would seek a "very
early" further meeting with the parties once the initial talks had
been concluded to secure a "cast iron guarantee" on U.K. production
and employment.
"I have no doubt that the British government...will be asked to
underwrite the deal financially and I have already said that the
British government in principle would be prepared to consider that,
but that would be linked to production and employment in the U.K.,"
he said.
Mandelson also said it seemed that bridging finance from the
German government and Magna would support not only Opel, but could
ward off GM insolvency in Europe.
-By Natasha Brereton, Dow Jones Newswires; +44 20 7842 9254;
natasha.brereton@dowjones.com