GM decision benefits taxpayers-Mandelson

"But whatever happens, we must see an appropriate, commercially based judgement being applied to redundancies which will take place in the context of restructuring," he said.

Mandelson said Wednesday he wanted talks soon with GM on its plans for the business and how they will affect British plants and workers. Vauxhall employs about 5,500 people.

He called Thursday for "a fair balance amongst those (EU) member state governments that will be underwriting the company financially, and that, of course, is something that we have yet to discuss amongst ourselves and with the GM management."

The spokeswoman for Mandelson's department said she could give no estimate of potential job losses at the British plants, but said: "Everyone understands and accepts the need for some rationalisation within Europe, including the unions."

(Reporting by Timothy Heritage, additional reporting by Adrian Croft in London, editing by Will Waterman)