General Motors sold Vauxhall-Opel for $2.2B

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The French enterprise that owns Citroen and Peugeot has closed a 2.2bn contract to buy GM’s European branch, including Opel.
6 Mar 2017 – BBC

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.

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.”

PSA said it would return Opel and its Vauxhall brand to profit, and expected to make savings of £1.47bn per year by 2026, with most of the cuts made by 2020.

Mr Tavares told the BBC that he trusted the Vauxhall staff to work in a “constructive manner” with PSA to improve their performance.

“As long as we improve the performance and we become the best, there is no risk they should fear.”

One worker at Vauxhall’s Ellesmere Port plant in Cheshire told reporters this morning: “I think the deal is good for current GM and Vauxhall employees, but is there a future for younger workers after 2021?”

Next year PSA will decide where it will make the next generation of Astra cars currently made in the UK against the background of Brexit negotiations.

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.

 

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