Concerns about the future of Vauxhall’s two UK plants are growing after talks broke down in Germany over which firm will buy its parent company, GM Europe.
Two of the bidders have said they will cut thousands of jobs in Europe.
With the German government a key player in negotiations, there are fears that Vauxhall jobs could be hit hardest.
But UK Business Secretary Lord Mandelson said he had received “categorical assurances” about continued Vauxhall production.
“Vauxhall’s production in the UK is a main revenue and profit stream for GM. There is no question of [GM] wanting to dispense with it,” he said.
“We are making sure the future of Vauxhall is secured.”
Lord Mandelson was responding to criticism that the UK government should be doing more to safeguard UK jobs.
Vauxhall employs 5,500 UK workers and has plants in Luton and Ellesmere Port.
Professor David Bailey, a car expert at Coventry University Business School, said that, taking into account suppliers as well as Vauxhall itself, the total number of jobs that could be affected by the takeover is between 15,000 and 20,000. Full story…
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