Car manufacturers and the iPhone generation

628 More

Earning the right to be successful

610 More

Knowledge is power

713 More

Selling cars – it’s all about timing

1,005 More

Truemag

  • Home
  • About
  • Advertise
  • Archives
  • Contact
  • Subscribe

UK Government “satisfied” with GM Magna deal

The sale of General Motors’ European operations to car parts giant Magna, backed by the Russian Sberbank, has left the Vauxhall workforce concerned that the Ellesmere Port and Luton plants will close. But last night Lord Mandelson said the company was committed to Vauxhall’s future.

”I’m glad the immediate uncertainty about GM’s future has been removed,” he said. ”We must now hope this GM/Magna/Russian deal will bring stability in the longer term.

”I have had four face-to-face meetings with Magna in the last couple of months. I am satisfied about their commitment to Vauxhall’s plants.

”The Government will now discuss our share of the funding of the deal and I expect to tie down the details of this in the near future.”

But union officials fear the sale, brokered by the German government, may lead to more job losses in the other European countries where GM has factories.

Workers leaving Vauxhall plants yesterday said they felt ”devastated” by the development, following earlier speculation that GM had decided against a sale.

The Government stressed that it was inevitable there would be restructuring of the business which would affect Germany as well as other countries.

Business Minister Pat McFadden said: ”Our objective throughout has been to get the best possible outcome for the Vauxhall workforce and the production plants in the UK.

”We have been in close contact with all parties throughout, including GM in the US and Europe and all the potential bidders.

”Now GM has announced its preferred bidder is Magna, we will continue our discussions with Magna. They have told us of their commitment to continuing production at both Ellesmere Port and Luton and we will work to make sure we get the best possible outcome for the UK.”

Unite union joint general secretary Tony Woodley said: ”The uncertainty surrounding the ownership of Vauxhall is now over, but the uncertainty surrounding the long-term future of Britain’s plants will continue.

”One of the alternatives could have been the unthinkable position of liquidation. Nevertheless, with Magna as the new owner, we need to make sure that British plants and people are not treated disproportionately during the restructuring that will take place. With that in mind, the union and the Government will no doubt continue to negotiate with Magna.

”We expect financial support from the UK Government for Magna to be dependent on the job and plant commitments given by the company.”

Unions had been pressing GM not to sell its European business, believing this would be the best option for securing jobs in the UK.

Magna said it would honour existing contracts at Luton until 2013, but has not given any commitment beyond this point.

Source: Daily Telegraph

Sep 11, 2009MTI
  • GM Europe chief gives Vauxhall job safeguard
  • GM cancels Magna deal
  • ‘Deal done’ to save Vauxhall jobs says union
  • Vauxhall job security “not certain”
  • Mandelson meets Magna and German officials over Vauxhall future
  • UK government may step in to help secure Vauxhall future
  • Things may get worse before they get betterBelgium wants EU to investigate Germany's role in Opel sale
    MTI
    13 years ago Manufacturers, Newsgraph51
    Most viewed
    Top 100 UK Dealer Groups
    39,744 views
    The car sales process and the “9 point plan”
    11,807 views
    webuyanycar review – They will buy any car but beware of the asterisk
    6,188 views
    Most commented
    Car sales and the power of silence…
    25 Comments
    Car dealers still not prepared to play the “we buy any car” game
    23 Comments
    A Traders Tale – Part Four
    22 Comments
    Win a pre-loaded Ipod Shuffle!
    19 Comments
    Bargain of the Week – StreetKa 1.6i Luxury
    14 Comments

    Auto Transport

    About MTI

    Motor Trade Insider
    is written by people working actively in the motor trade for people on the inside and people on the outside.

    Our aims
    Build a bridge between consumers and the trade, create Interesting and informative content, break down barriers and create better understanding, expose bad practices and rip-offs and promote outstanding products and service.
    Have something to say?
    We are always looking for experienced writers who can write good original quality posts on motor-trade-insider.com. Please contact us if you would like us to consider you. Make sure you give us details of your own blog or a link to some articles you have written.
    2017 © Motor Trade Insider
    Truemag theme by StrictThemes