US automaker General Motors filed for bankruptcy protection on Monday, creating uncertainty and fearin Europe's ailing car industry.

In Britain, there is particular concern for the more than 5,000 car workers at Vauxhall, one of the several firms owned by the US car giant. And despite reassurances from the British government, unions fear that employees will be left out in the cold.

Deal brokered

On Saturday, it was announced that Canadian-Austrian parts manufacturer Magna had brokered a deal to buy Opel, a subsidiary of GM, which operates in Germany, Spain and Poland.

The German government is expected to put forward 1.5 billion euros (US$2.1 billion) in loans into Opel.

But as of Monday there was still no word from the British government as to what action it might take to secure jobs at the two Vauxhall manufacturing plants.

Plants at Ellesmere Port, in northwest England, and Luton, to the north of London, manufacture Opel cars and vans under the brand name of Vauxhall. It is feared at least one of the two plants will be closed.

Magna is partly funded with Russian money with Russian oligarchOleg Deripaska and the Russian bank Sberbank is holding a particular stake as part of the Magna takeover of the European operations of GM.

And there are worries that van production at Luton may shift to Russia with a potential loss of 1,500 jobs in Britain.

Business Secretary Peter Mandelson said he had been reassured by Magna that British jobs were safe. However, he said earlier he was seeking talks with Magna and that "tough bargaining" was needed to safeguard British interests.

But his comments appeared to contradict those of Siegfried Wolf, chief executive of Magna International. "At the end of the day, companies have to be profitable. Companies that are not profitable are not good for society," Wolf said this week when asked about the security of British jobs at Luton's van manufacturing plant.

The Luton plant makes Vivaro vans. But with falling sales in commercial vehicles and a contract that finishes in 2012, its future is far from clear.

While Vauxhall will still have some stake in the British car industry in the coming years, there will be some restructuring as Magna seeks to make both Opel and Vauxhall more profitable.

Speaking on the business TV channel Bloomberg, Wolf said he would not make any firm decisions until September.

Unions urge more action

Britain's biggest union Unite has already expressed its concern. Union boss Tony Woodley said the future of Vauxhall was in jeopardy and the government had not put enough money in and had failed to get to the negotiating table with Magna.

But his comments have been dismissed by Mandelson, who said the British government was making efforts to keep jobs secure.

However, Mandelson has conceded that "reorganizing and restructuring" might take place at Vauxhall and that there may be job losses in Britain, as well as Europe, since British plants have "excess capacity."

(Xinhua News Agency June 3, 2009)