VAUXHALL Motors’ Ellesmere Port plant has welcomed a £2bn Government support package for the struggling motor industry.
In a statement to the House of Lords this afternoon, Business Secretary Lord Mandelson, unveiled a scheme to guarantee loans for car manufacturers and major suppliers.
He said the car industry was "not a lame duck" and that the measures were "no bail-out".
However, Mr Mandelson admitted that the industry’s output was "falling faster and further than any other sector".
Vauxhall, which employs more than 2,000 staff at its North Road site, has been hit by a slump in sales and at the end of 2008 was forced to freeze production completely with a series of "down days".
To cut costs the plant also extended its Christmas shutdown from two weeks to a month.
Spokeswoman Jos Sharp said: "General Motors UK welcomes the announcement from Government on support for the UK motor industry.
"We look forward to further clarification from Lord Mandelson at the motor industry summit meeting today (Wednesday) before we can consider the short and long term implication of the support plan."
Before yesterday’s announcement a spokesman for Prime Minister Gordon Brown said: "Lord Mandelson and the department have been making clear that, in our view, the car industry is a sector with a strong future.
"So not only are we in a position to provide some support to help them get through this difficult period but also – and this will be a very important part of the announcement – this is about how we provide the right support for them in the future.
"This is not a bail-out. Provision was set aside at the pre-budget report for a number of subsequent interventions and we will be allocating some of that provision.
"This is helping what the Government believes are fundamentally sound companies get through a difficult period."
