Vauxhall's parent company, General Motors, has awarded £100 million-worth of contracts to UK car suppliers.
Business Secretary Vince Cable welcomed the deals while attending his first meeting as co-chairman of the Automotive Council - set up to look at the long term strategic development of the UK automotive industry.
Mr Cable said: "I'm delighted that SMEs (small and medium enterprises) in the UK will benefit from these contracts from GM.
"It shows that they can compete and win business from big corporate companies that trade all over the world."
Bill Parfitt, chairman and chief executive of Vauxhall Motors and GM UK, said the creation of the Automotive Council and the renewed focus on manufacturing has re-emphasised that the UK is a key sourcing location.
He said: "We were able to award these contracts because of the excellent quality and lower transportation costs and because each contract showed a beneficial business case."
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