Business Secretary of the State Lord Mandelson gave way to deal between General Motors and Vauxhall providing an amount of £270 million, in an attempt to save more than 32000 jobs.
"I always said the Government would stand four-square behind Vauxhall and, with this announcement, we have kept our word", he said.
Following the deal the operations of Vauxhall in Britain will continue and no more job cuts would be seen.
Out of the total loan amount promised by Lord Mandelson, £2.4 billion will go to Opel, which is Vauxhall's sister, organization.
Last month, GM had announced its plans to cut 500 of its jobs in Britain, without pausing productions in Ellesmere Port and in Luton.
GM's president Nick Reilly explained that job cut will hit the Luton production plant mainly, thereby saving 21,000 of the jobs at Ellesmere Port.
Out of the 48,000 workers of GM in Europe, 16% are losing jobs, with the majority of them being based in Germany. Thus restructuring the operations in its European plants is an apparent endeavor of GM, at present.
As per the estimations of the American carmaker, the total restructuring will cost _1.8bn.