General Motors has agreed to sell a majority stake in Vauxhall owner GM Europe to a Canadian/Russian consortium.

After months of wrangling GM has finally decided that it will sell 55% of Vauxhall/Opel to Canadian car parts company Magna International and Russia's Sberbank. GM will retain a 35% stake in the company, while GM employees have 10%.

The deal means that GM wil continue to provide global R&D for future new products, in much the same way as it does with other joint ventures such as the GM-DAT company which produces Chevrolets outside of the US.

The deal should be sealed within the next few months. In the meantime, GM will seek the written agreements of the labour unions to support the deal with the necessary cost restructuring for viability, and the finalisation of a definitive package from the German government.

That financial package from Germany will have been a key part of the decision, as Chancellor Angela Merkel has promised nearly £4 billion in loan guarantees if the Magna/Sberbank bid won through. It is believed these guarantees will secure jobs at GM Europe's German plants.

As a result, fears are already being voiced over the future of the jobs of 5,500 employees of Vauxhall at Ellesmere Port and Luton in the UK. The British Government has so far not made any pledges to aid Vauxhall.