Monitoring Desk
The French company that owns Peugeot and Citroen has struck a 2.2bn euro (£1.9bn) deal to buy General Motors’ European unit, including Vauxhall. GM Europe has not made a profit since 1999 and the deal has raised fears about job losses at Vauxhall.
The UK factories at Ellesmere Port and Luton employ about 4,500 people.
With GM’s Opel and Vauxhall operations, PSA Group would become the second largest carmaker in Europe, behind Volkswagen.
In a statement, Carlos Tavares, chairman of PSA’s managing board, said: “We are confident that the Opel/Vauxhall turnaround will significantly accelerate with our support, while respecting the commitments made by GM to the Opel/Vauxhall employees.”
One worker at Vauxhall’s Ellesmere Port plant in Cheshire told reporters this morning that they were “still in the dark” about jobs.
Another said: “I think the deal is good for current GM and Vauxhall employees, but is there a future for younger workers after 2021?”
Len McCluskey, general secretary of Unite, said that the union would continue to “work day and night” to fight for Vauxhall staff at plants at Luton and Ellesmere Port.
“Our plants are the most productive in the European operation, the brand is strong here, the market for the products is here, so the cars must be made here.,” MrMcCluskey said.
“But there is also a role for the government to play. The uncertainty caused by Brexit is harming the UK auto sector.”
GM chairman and chief executive Mary Barra said it was a difficult decision to sell Opel and Vauxhall, and insisted the business would have broken even in 2016 had it not been for the UK’s decision to leave the European Union, which caused a sharp drop in the value of the pound.
Former Business Secretary Sir Vince Cable said there were doubts about jobs because of the government’s “lack of commitment to the customs union and the single market”.
“Car components have to go backwards and forwards across frontiers and they will acquire tariffs and checks.
“And Vauxhall is particularly is exposed to this, [as] about 80% of its exports are to the European Union.
“And if you’re a hard headed car executive looking at the competitiveness of Britain versus German plants, Britain, I’m afraid, is going to slip down the ranking in future.”
