Merger deal raises Vauxhall jobs fear
A MEGA-merger deal to create the world’s fourth-biggest car maker has raised fears over the future of Vauxhall jobs in the UK.
PSA, the French owner of Vauxhall and Peugeot, has agreed to join forces with Fiat Chrysler to form a £38billion company selling 8.7 million vehicles a year with combined revenues of nearly £144billion.
The two firms expect annual cost savings of £3.1billion with no plant closures as they look to benefit from combining technologies and through shared purchasing agreements.
But Britain’s biggest union is seeking guarantees about the future of Vauxhall, which makes the Astra and employs more than 1,000 people at its Ellesmere Port factory in Cheshire. It also has a plant in Luton making vans.
Unite national officer Des Quinn said: “Unite is seeking guarantees at the highest level as to the long-term future of all PSA’s UK sites and its highly skilled world-class workforce.
“It is essential such a meeting happens as soon as possible to alleviate natural and legitimate concerns of the workforce at this time of change and uncertainty.
“Unite will also be seeking guarantees about new investment to ensure that the company’s UK factories are able to continue to build high-quality cars and vans to meet the challenges of the transition to electric vehicles.
“The confirmation of the merger means the new company will have an even greater share of the UK marketplace with both the Vauxhall and Fiat brands being well-known names on the UK’s roads. This further strengthens the industrial logic of maintaining a manufacturing presence in the UK.”
Mergers expert John Colley, of Warwick Business School, said: “Jobs will be protected in France and Italy. This will be a fundamental requirement of both governments. Other countries such as the UK will have to bear real efficiency savings.”
The new group will be led by PSA boss Carlos Tavares, who said: “Our merger is a huge opportunity to take a stronger position in the auto industry.”