Britain has written a letter to European competition chief Neelie Kroes, questioning the viability of Magna International's plan to purchase the European arm of General Motors, Opel.

In the letter, Britain's business secretary Lord Mandelson said that the Canadian company’s restructuring plan would be open to political intervention.

Lord Mandelson wrote, “We do not believe the case has been demonstrated that the current Magna proposal is commercially the most viable plan.”

The letter also stated that the deal was about €2 billion more expensive than a rescue of Opel. 

It is worth mentioning here that a German newspaper claimed yesterday that as many as 1,400 Vauxhall workers might be axed as Canadian car parts manufacturer Magna International is going to restructure Opel.

Magna’s restructuring plans may throw about 11,000 workers out of jobs through out Europe, but Non-German workers are more at risk as Magna had assured the German government that German jobs would be protected whenever the Canadian company finalizes it restructuring plans.  

The European Commission confirmed that it had received the letter and said it would examine whether Germany had tied 4.5 billion euros in promised state aid to preserve Opel jobs in Germany.