Motor giant General Motors has decided to sell its European arm, including Vauxhall, to Canadian car parts firm Magna, the German Chancellor has announced.
Angela Merkel told a news conference in Berlin the move was the outcome the German government had been working towards as it fought to preserve the firm's 25,000 jobs and four plants in Germany.
The decision is a blow to unions in the UK which have warned about possible job losses among 5,500 workers at Vauxhall's plants in Luton and Ellesmere Port if Magna was successful.
Sources had earlier suggested that the GM board was set to decide not to go ahead with a sale, which would have eased fears of UK job losses.
Angela Merkel told a news conference in Berlin the move was the outcome the German government had been working towards as it fought to preserve the firm's 25,000 jobs and four plants in Germany.
The decision is a blow to unions in the UK which have warned about possible job losses among 5,500 workers at Vauxhall's plants in Luton and Ellesmere Port if Magna was successful.
Sources had earlier suggested that the GM board was set to decide not to go ahead with a sale, which would have eased fears of UK job losses.



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