Vauxhall is insisting it is business as usual despite its impending sale and the move by parent company GM into bankruptcy protection.

GM in the US officially filed for Chapter 11 bankruptcy protection today (Monday June 1), giving it time to work on a revitalisation plan while being shielded from its creditors.

And Vauxhall parent company GM Europe has moved one step closer to being taken over after securing a euro 1.5 billion bridging loan from the German government, and signing a memorandum of understanding with vehicle parts manufacturer Magna International.

“Chapter 11 will not affect GM subsidiaries outside the US, so for us it really is business as usual," said a Vauxhall spokesman.

“For GM Europe customers nothing has changed - can rely on their service and warranty, as they always have, and parts suppliers and employees will continued to be paid in the normal way.

“We’re in the process of building a new company which we’re all very excited about”

GM Europe has set up a dedicated website to assure customers and suppliers of its future. The site – www.gmeurope.com/restructuring - aims to answer questions from suppliers, customers, employees and dealers.

It will also include telephone lines for UK suppliers and customers.

The Chapter 11 process in the US is expected to take between 60 to 90 days, after which a new, "leaner" company will be formed.

After gaining access to the bridging loan, GM Europe is ready to operate on a self-financed basis.

Saab is not affected by the moves, and has until August 20 to reorganise its business under protection from the Swedish courts.

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