General Motors, the owners of British car manufacturer Vauxhall, have announced the sale of their European arm, to Canadian motor parts giant Magna.
The deal also includes the sale of GM's other major European brand, Opel, which is manufactured in Germany. Vauxhall and Opel account for more than 70% of GM's sales in European.
The sale was confirmed in Berlin today, and has sparked fresh concerns over the security of the 5500 jobs at the firm's production plants in Ellesmere Port and Luton.
The deal was confirmed by German Chancellor Angela Merkel, who pledged £4bn of financial support for the company in return for guarantees that Germany's production plants, which employ 25,000 workers, would not be closed down.
British business chief Lord Mandelson had favoured a more commercial deal from Belgian investment consortium RHJ International, but GM were encouraged to accept the offer from Magna amid fierce lobbying from the German government.
Chancellor Merkel described the sale as "the right decision", where Magna would gain a 55% controlling stake in the company. General Motors retain a 35% interest, and Opel's workers will acquire a 10% share.
There are now fears that guarantees to preserve German jobs will leave little security for British workers at the Vauxhall production plants, and the Canadian group has warned there will need to be around 10,000 job cuts across Europe.
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