Car manufacturers and unions 'are the solution'

Britain's car manufacturers and its unions are no longer the problem, but the solution, business secretary Lord Mandelson said today.

His comments came as he pledged the Government's support in underwriting a deal to buy out struggling car company Vauxhall.

Lord Mandelson toured Vauxhall's Luton plant, meeting union officials and company managers as negotiations continued with potential buyers of its parent company.

He said the Government would underwrite a deal for the sale of GM Europe, which includes Vauxhall in the UK and Opel in Germany, but refused to be drawn on what figures a deal would involve.

He said: "I have seen the performance record, I have seen the productivity, I have seen the safety and the lack of absenteeism.

"Unlike in the past when we saw Britain's carmakers and their unions frankly being part of the problem, it's very different now.

"Definitely here in Vauxhall they are part of the solution."