Urgent Vauxhall talks

May 29 2009 by Iain Laing, The Journal

EUROPE’S industry ministers are holding emergency talks today amid concern at Germany’s handling of moves to sell General Motors Europe, which employs 5,000 UK Vauxhall workers.

Business Secretary Lord Mandelson, who has already met the main bidders for GM Europe, may attend.

The two bidders, Fiat and Magna, have vowed to keep Vauxhall production in the UK. The commission called today’s Brussels talks hoping to clarify German thinking after the failure of talks in Berlin to secure a buyer. A commission spokesman said: “I would point out that this is not the start of our involvement. It is part of an ongoing process.” A fortnight ago, the commission met GM bosses, industry officials and ministers of 12 EU countries. EC vice-president Gunter Verheugen spoke then of the need for any restructuring of GM Europe to “fully respect EU rules”.

The meeting agreed “no national measures (to support GM Europe) should be taken without prior information and co-ordination with the commission and other involved countries”. Any aid from German Chancellor Angela Merkel to a buyer would need approval.