GM decision benefits taxpayers-Mandelson

He said he believed workers at GM's Vauxhall unit in Britain would prefer to keep the same management rather than have new owners, but gave no details of how the restructuring of the company would be financed.

A spokeswoman for Britain's Department for Business said in London that Mandelson held "constructive" phone conversations on Wednesday with GM Chief Executive Fritz Henderson and with German Economy Minister Rainer Bruederle.

She said Mandelson wanted "early sight" of a GM business plan for its European operations.

GM scrapped plans Tuesday to sell Opel, including its British Vauxhall plants, to a group led by Canadian auto parts supplier Magna.

"Now this is creating uncertainty and some fresh fears amongst Opel and Vauxhall workers," Mandelson told Brussels-based reporters in a video link-up from London.

"On the other hand, it will be a significantly less costly deal for European taxpayers, notably German, British and Spanish taxpayers."

Germany had seen Magna and Russian partner Sberbank as most likely to preserve as many German jobs and plants as possible.

Countries with Opel plants including Germany, Britain, Spain and Belgium were originally expected to provide aid for the rescue of loss-making Opel. GM said it expected restructuring Opel on its own would cost about 3 billion euros.

"I think our own Vauxhall workforce would prefer to keep with the management they know rather than take a chance with a management that they don't," Mandelson said.