Vauxhall deal puts British jobs under threat

Link to the article: Channel 4 News

By Channel 4 News

Fears are growing over thousands of British jobs following the decision by General Motors to sell Vauxhall and the rest of its European business to the Canadian parts maker Magna.

Germany stumped up billions of pounds to secure the deal and will now keep all four of its car plants open.

Chancellor Angela Merkel could barely contain her delight but workers at the UK's two plants in Luton and Ellesmere Port said they were "devastated" at the news and feared for their long-term future.

The deal suggests the British plants will continue to produce vehicles until 2012, but after that only production plants in Germany are likely to have a guaranteed future.

Pat McFadden MP, minister for business, told Channel 4 News: "We've been told that Magna see a continued production future in both Ellesmere Port and Luton.

"I don't think they've put a time limit on that.

"What we want to do in the weeks and months ahead is to make sure there is a future for both of those plants.

"Peter Mandelson has been in constant touch with both Magna and the General Motors board. We've been talking to all parties throughout this.

"There has not been a negotiating table that we haven't been at. If there's been a meeting in Germany that we've not been at I'm sure there's been a meeting in the UK they've not been at.

"I don't think you can say that somehow we have not been active on this. I don't think that's what the union are saying today. They know that we've made significant efforts on their behalf.

"I've got confidence in the UK workforce and the products they make and we want to make sure they've got a secure future going forward."

General Motors has been considering rival bids for its European arm of the company since filing for bankruptcy earlier this year. A competing bid was made by RHJ International, a Brussels-based investment house.

Unite's joint general-secretary Tony Woodley said: "I think we could have had an unmitigated disaster if General Motors had gone into receivership and liquidation. But we've got a major disappointment.

"Magna clearly are not our preferred buyer because their plans for Britain at the moment allow us to be uncertain about the future of both our Luton and Ellesmere Port plants.

"It's secure at the moment for the next four years certainly in both of those plants but time flies and in our industry we require 14 years' security.

"I don't think either of the plants have a very clear long-term future at the moment because the Magna deal identifies a lack of investment and lack of product beyond the new Astra at Ellesmere Port that's just coming off the tracks now and beyond the deal with Renault that sees vans coming off the Luton tracks.

"You've got a general election in Germany. They've obviously been prepared to put politics at the forefront and offer Magna a blank cheque.

"Germany's the largest partner in General Motors Europe. It's got most of the plants and most of the employees so they've got to cut a deal but the deal is far from done and dusted here. If I was sitting in the Antwerp plant I'd be much more worried than my Vauxhall plants at the moment.

"But we've got to get the Government back on board and make it clear to Magna they can't sack our people and expect to pick up our marketplace, the goodwill of a workforce and maybe as much as £500 million from the Government.

"So there are some hard negotiations now to take place."



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