The European divisions of General Motors (GM) could collapse within weeks without a £3 billion bail-out from European governments, according to its top executive.

But despite the stark warning casting a shadow over 300,000 jobs, GM insisted that Vauxhall’s UK factories at Ellesmere Port and Luton were safe under its new-look organisation.

“We need a decision on financial aid for Europe because we are running out of time,” said GM chief financial officer Fritz Henderson.

“Without it we will run into liquidity problems by the second quarter of the year.”

The US giant gave up its stake in its European operations as part of its business plan presented to the US administration in order to get funding for its own survival.

If and when European funding is secured, Opel and Vauxhall will still need to make savings of £1 billion a year, closing up to three plants.

But the president of GM Europe Carl-Peter Foster stressed that would not include the UK plants, especially considering the current sterling-euro exchange rate.