Nick Reilly, General Motors Europe acting chief executive, has promised less job cuts at Vauxhall than planned under the aborted takeover bid from Magna.

Lord Mandelson has also revealed the Government is willing to provide financial backing for restructuring in the UK following a meeting with Reilly in London.

Reilly reassured that if the Government provided financial backing the 5,000 workers at Vauxhall’s Ellesmere Port and Luton plants would have a "good future".

GM’s restructuring of its European operations is likely to take three weeks and it is expected to cut up to 10,000 jobs from its total 50,000 European workforce.

GM withdrew its offer to sell off Vauxhall and Opel to Magna at the start of November.

The American manufacturer said it made the decision because of "an improving business environment for GM over the past few months, and the importance of Opel/Vauxhall to GM's global strategy".