Motor company General Motors has confirmed that it is to shed 10,000 workers across its European car unit Opel, which includes Vauxhall in the UK.

The BBC reports that the announcement comes a day after GM said it was cancelling its deal to sell Opel to Canadian car parts firm Magna.

Unite joint general secretary, Tony Woodley, said: “So negotiations start again. Of course, restructuring will still be needed, but this is a business which supports well over 20,000 jobs and 400 component companies in this country.

“Our expectation then, is that General Motors will be sticking to its original plan for its EU sites, including the UK, and that this has not altered.

“We expect that all the governments of Europe, including our own, will now be asked to contribute to maintaining the business. This is a massively significant development and a far better deal for Britain. We expect our government to do all it can to support it.”

Business secretary Lord Mandelson, in a statement, said: “I am keen for very early discussions with GM over their plans for the business and how they will affect British plants and workers.

“I have always said that if the right long-term sustainable solution is identified, then the government would be willing to support this.”