Vauxhall close to netting £500m funding from UK banks

Vauxhall is reportedly close to finalising a £500m loan package from a consortium of British banks,

Parent company Opel/Vauxhall has formally applied for €2.7bn in financial support from European nations including the UK government, which has agreed to underwrite the loan.

The restructuring plan will see reduced capacity and 8,300 job cuts from GM's European operations in an attempt to return to profitability.

Although redundancies are not expected at Vauxhall's Ellesmere Port plant near Merseyside, GM Europe chief Nick Reilly has confirmed that Vauxhall's van-making plant at Luton will lose 369 jobs, while another 154 staff will go from the automaker's sales and marketing operations in the UK.

The impact will be felt the most in Belgium and Germany, with the loss of 2,377 and 3,000 jobs respectively.