Lord Mandelson called on Brussels on Thursday night to ensure that Germany’s offer of multibillion-euro subsidies to smooth the sale of General Motors’ European arm does not begin a “subsidy war”, with governments using state aid to protect jobs.

The UK business secretary’s intervention in the escalating political row over the takeover of Opel and Vauxhall by Magna, the Canadian car parts manufacturer, reflects London’s fears that jobs at GM’s Vauxhall car plants in Ellesmere Port and Luton will be sacrificed to keep Opel’s four German plants going. The British plants have about 5,000 workers.