EC OKs 12 Million Pounds of British Aid for GM's Vauxhall

03/14/97

Reuters reports that the European Commission announced on Wednesday that it had approved a British plan to give GM 12 million pounds sterling worth of aid in support of a Vauxhall Motors Ltd investment project.

The EC said the aid plan complied with European Union criteria for regional aid. GM's investment through Vauxhall will reportedly create 805 new jobs and preserve 3,410 existing jobs in Ellesmere Port, Cheshire.

Vauxhall's total investment package will reportedly reach 294 million pounds sterling and forms part of GM's plan to launch a successor to its European Astra model. The EC said most of the British aid--about 10 million pounds--will be paid to Vauxhall in four installments between 1997 and 2000.

Paul Dever -- The Auto Channel