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There was good news yesterday for the 5,000 UK workers employed at the Vauxhall plants in both Ellesmere and Luton, as the government finally concluded a deal with the struggling US car giant MG to secure the future of both manufacturing sites.

As well as being a big local employer, the two sites have a long and integrated history with their local communities. The Luton plant opened in 1905 and the Ellesmere plant began production in 1960. Since the virtual collapse of GM, car production at Luton has now ceased, but the production of vans for various Vauxhall subsidiaries and associates such as Opel and Renault continues. 

In an announcement by the Prince of Darkness, First Secretary of State, Lord President of the Council and Secretary of State for Business, Innovation and Skills, Peter Mandelson himself assured anxious Vauxhall employees that a £270m loan to their US masters would ensure the security of the plant. In a statement Peter Mandelson said “We need Vauxhall to thrive as part of Britain's automotive manufacturing base and following our negotiations with GM Europe I am confident it will do so”.  

The move comes after months of tense negotiations between the government and GM were concluded. Officials state that a potential 35,000 jobs could have been put at risk if Vauxhall had withdrawn from the UK. Over 5,000 workers are currently employed at the two plants, but a further 30,000 are believed to be part of Vauxhalls extensive used van, car dealership and van hire network. The complete collapse of Vauxhall would have disastrous for the UK automotive trade and Britain’s stumbling economy.