German government representatives have met with bosses at General Motors and Peugeot and called talks between the two carmakers over a potential takeover "advanced".
The French company PSA has proposed a takeover of General Motors' European Opel operations, including Vauxhall.
"I can confirm that there have been talks with GM and Peugeot", the spokeswoman for the German economy ministry said at a government press briefing, adding the talks between GM and Peugeot were at an advanced stage.
When asked about job guarantees for workers in Germany, the spokeswoman said it was up to management and labour representatives to discuss that.
Earlier today, worker's representatives of Opel said they were prepared to hold "constructive" talks with PSA.
"The fundamental basis for these talks… must be the unequivocal recognition and implementation of existing agreements for all Opel/Vauxhall sites," the German and European works councils and the IG Metall trade union said in a joint statement.
Concerns have been voiced about the future of thousands of jobs at Britain's Vauxhall plants as well.
Business secretary Greg Clark today held talks in Paris with the French government and PSA. He said the French firm wants to build on the success of Britain's Vauxhall business.
Unite’s Len McCluskey yesterday said he was seeking “urgent talks” with PSA.
The union leader met Clark and GM president Dan Ammann for crunch talks. McCluskey told Sky News “no assurances” had been offered to Vauxhall workers in the UK, after he had called for Nissan-style guarantees for UK car plants earlier this week.