‘Sigh of relief’ for Vauxhall in UK

Jun 1 2009 by Iain Laing, The Journal

BUSINESS Secretary Lord Mandelson said he has received a “firm” commitment that Vauxhall production would continue in the UK but conceded a rescue deal for the company contains no details of potential job losses.

Union bosses and MPs have warned the deal to save Vauxhall and its sister company Opel could see German jobs safeguarded ahead of those of its 5000 workers in the UK.

Canadian car parts firm Magna has agreed to take over the European arm of General Motors as the stricken car giant prepares to file for bankruptcy in the United States.

But with Germany taking a lead in the negotiations – about half of GM Europe’s 50,000 workers are employed there – concerns have been expressed that jobs at Vauxhall’s sites in Luton, Bedfordshire, and Ellesmere Port will be sacrificed under the new regime.

Lord Mandelson said yesterday everybody determined to protect Vauxhall could breathe a “huge sigh of relief” now a deal for GM’s European operations had been struck.

Magna’s bosses had given a commitment to continue Vauxhall production in the UK, he said, but had given no details as to how long or whether job losses would follow.

“We will have to see as Magna itself becomes more specific what the implications are,” Lord Mandelson said. But he added he had been told by senior GM executives that they were firmly committed to their UK plants. And he said neither German nor Polish plants were ready to take over production of Vauxhall’s Astra model from the British factories.

He said more details would emerge in the coming months, and added: “During that time we have all got to come together in Britain and back the Vauxhall plants.”