Britain's government has announced that it will provide General Motors a loan guarantee of £270 million for its two Vauxhall plants. This will definitely boost the morale of the company up.

GM had planned earlier to restructure the operation of its two brands, the popular Opel and Vauxhall. Both of them were facing some serious marking and operational issues. Now the company can concentrate to solve the issues of this loss making duo.

UK business secretary, Lord Mandelson has informed that the deal was basically to save the jobs of more than 4,700 workers in Ellesmere Port and Luton plant. The company will receive the benefits as it possesses a reasonably fair track record in plants as well as in workforce. The government had kept its promise by supporting General Motors. But according to internal sources, the government has agreed on this move as Spanish unions have accepted the ongoing job cuts and the pay slashes in Opel's biggest factory Figueruelas.

However, Opel believes that such a move will help the company to rethink its tactics and developments in the UK and Spain will improve the relationship between European countries.