Vauxhall Motors seeks government aid

Vauxhall Motors, a British subsidiary of General Motors, has held secret talks with government officials as it seeks to save thousands of jobs, sources said.

The Times of London reported Saturday that the English automaker approached Business Secretary Peter Mandelson for financial help as its U.S. parent company faces potential collapse.

Follow-up meetings with Mandelson are believed to have also involved representatives from other car manufacturers with British plants, including Ford and Honda.

The newspaper said Vauxhall’s move marks the first time a company outside the financial services sector has sought government aid since the global credit crisis began more than a year ago.

Although Vauxhall employs about 5,000 workers in Britain, but there are estimates the company’s collapse would affect 50,000 workers employed by part suppliers, car dealerships and local businesses.

The Times said European Union rules normally preclude state aid to car manufacturers, but EU officials are under pressure to prevent the loss of jobs during the current recession.