Tuesday, June 02, 2009

Uncertainty continues over Vauxhall jobs

The future shape of Vauxhall in the UK and the fate of its 5,000 employees remains in doubt following the sale of Vauxhall-parent GM Europe to Canadian car parts giant Magna International.

Business Secretary Lord Mandelson, speaking on the BBC's The Politics Programme on Sunday, said he had spoken with senior executives of General Motors in Europe and they had reiterated their commitment to Vauxhall production continuing in the UK.

But he warned: "We've got now to pin down specific plans and specific implications for jobs," adding that Magna had been short on detail on its plans for the business and the implication for UK jobs.

Lord Mandelson said Magna's bid could threaten the production of the Renault Trafic in Luton.

Renault builds its Trafic van in Luton and the contract is set to run until 2012.

He told the BBC that Renault Nissan has a clause in its contract which would allow it to renegotiate or terminate the agreement with Luton, should the ownership of the plant change.

"These are among the many details and specifics of Magna's plans that we have to discuss with them and tie down," Lord Mandelson said.

"If they want British government to help underwrite this new company going forward, they are going to have to demonstrate what's in this new arrangement for Britain, for British production and British workers."

GM is to file for bankruptcy protection in what would rank as one of the biggest bankruptcies in US history.


DATED: 02.06.09


FEED: MT






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