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Barack Obama has stepped into the row about the future of Vauxhall and Opel as anger about General Motors’ decision to keep its European operations threatens to harm transatlantic relationships.

President Obama is believed to have secured an agreement with Angela Merkel, the German chancellor, that she would “co-ordinate” with the US leader on the future of GM Europe during a phone call.

The American government is the majority shareholder in GM but a spokesman for Ms Merkel said President Obama told Ms Merkel he had not been involved in the car maker’s decision to scrap the sale of Vauxhall and Opel to Magna and Russian state-owned bank Sberbank .

GM’s U-turn has sparked a furious response in Berlin and Moscow, with 50,000 jobs at stake across Europe.

Vladimir Putin, the Russian prime minister, yesterday lambasted GM’s approach as “scornful” and questioned his country’s business relationship with the US in the future.

“We will have to take into account this style of dealing with partners in the future, though this scornful approach toward partners mainly affects the Europeans, not us,” he told a cabinet meeting in Moscow. “GM did not warn anyone, did not speak to anyone – despite all the agreements reached and documents signed. Well, I think it is a good lesson.”

Magna and Sberbank had been planning to expand Opel significantly into Russia, and Mr Putin has lost a chance to access the Western car market and its technology.

However, despite the reaction outside the UK, Lord Mandelson, the Business Secretary, has given GM’s decision a cautious welcome and indicated he is prepared to offer part of the €3bn (£2.7bn) GM needs in financial support to recapitalise Vauxhall and Opel. Lord Mandelson said there must be a “fair balance” of jobs lost and

(Excerpt) Read more at telegraph.co.uk ...
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