Minister’s Paris crisis talks to save 3,500 Vauxhall jobs
BUSINESS Secretary Greg Clark travelled to Paris last night in a bid to save 3,500 British jobs threatened by a proposed takeover of Vauxhall.
The French car giant that owns Peugeot and Citroen is in talks to buy Vauxhall – taking control of its two factories in Bedfordshire and Cheshire.
But it is feared the move will result in thousands of job losses and even the closure of the Vauxhall plants at Ellesmere Port – which is known as the ‘home of the Astra’ – and Luton.
The row over the future of Vauxhall comes weeks after Theresa May launched her postBrexit industrial strategy.
Ministers are under pressure to protect UK companies vulnerable to overseas predators amid warnings a string of high profile foreign takeovers have resulted in the loss of jobs, expertise and ideas.
Mr Clark travelled to Paris by Eurostar last night for crisis talks with bosses at Peugeot and Citroen owner PSA Group.He will also meet French industry minister Christophe Sirugue in an attempt to safeguard British jobs.
The proposed deal would see PSA Group buy the European arm of US giant General Motors which includes Vauxhall in Britain and Opel on the Continent.
Vauxhall employs 1,830 staff at its factory in Ellesmere Port where it makes the Astra and a further 1,530 at the plant in Luton where it produces the Vivaro van. It is feared PSA Group would rather shut Vauxhall plants in Britain than Opel factories in Europe, including in Germany and France, given the French government owns a 14 per cent stake in the company. But British union chiefs have demanded that the Government offer PSA Group incentives to keep Ellesmere Port and Luton open – just as it did with Nissan to convince the Japanese car maker to increase its investment in Sunderland.
The Unite union’s Len McCluskey described Vauxhall as ‘ a jewel in the crown’ of GM’s European business. ‘I will be seeking reassurances on behalf of the 35,000 workers across the UK that rely on this company for a job,’ he said. ‘We will not accept a single job loss from this process because these plants and their workforces are world- class and deserve a future.’
Mr Clark earlier held talks with GM president Dan Ammann. The Business Secretary said he was ‘reassured by GM’s intention to build on the success of these operations’ – even though GM is planning to sell the plants.
He added: ‘I emphasised the importance and successful presence of Vauxhall in the UK and welcomed GM’s recognition of the excellent and committed workforce at Ellesmere Port, Luton and across the UK.’
PSA Group has a record of cost-cutting and closed its last UK factory, the Peugeot plant in Ryton, Warwickshire, in 2007 with the loss of more than 2,000 jobs. The latest figures show it axed 15,559 jobs in its automotive division between 2013 and 2015.
GM has made major investments in its UK operations in recent years, but Vauxhall and Opel have failed to make a profit for GM since 1999.
The French firm planning to take control of British car maker Vauxhall has slashed more than 15,000 jobs in the last three years – and doubled its boss’s pay.
Peugeot and Citroen owner PSA group is in talks to buy the european arm of general Motors (GM) – including Vauxhall in the UK and opel on the Continent.
The row over the takeover escalated last night as Business Secretary greg Clark headed to Paris for crisis talks with French ministers and Peugeot chiefs. Clark was yesterday under mounting pressure to safeguard British jobs.
it is feared the deal will result in the closure of the Vauxhall plants at ellesmere Port in Cheshire and Luton in Bedfordshire.
experts said PSA chief executive Carlos Tavares – who has a reputation for ruthless cuts – would have ‘little choice’ but to shut UK factories to make the takeover work.
The French firm closed its last British factory – the Peugeot plant in ryton, Warwickshire – in 2006 with the loss of more than 2,000 jobs.
it has since axed 15,559 jobs in its automotive division between 2013 and 2015 – with many of the job losses coming under Tavares, 58.
He took over at PSA in 2014 as it faced ruin and has won praise for turning one of France’s biggest manufacturers around.
The latest figures from the company show staff numbers in its automotive division fell from 111,228 in 2013 to 95,669 in 2015. it is understood there were further job cuts during 2016.
Tavares was criticised after his pay nearly doubled in 2015 to £4.5m. France’s ex-prime minister Manuel Valls said it did ‘not correspond to the reality of the employees of this great company’.
British ministers are now under pressure over the new deal. Vauxhall has 1,830 staff at ellesmere Port and 1,530 in Luton. John Colley, a professor at Warwick Business School, said: ‘Tavares has little choice but to close ellesmere Port and Luton to make the opel acquisition work. The cost of closing the high- cost german plants will be at least triple that of the UK plants.
‘Not only will they have to placate the powerful german unions but redundancy costs are around three times the level of the UK.’
Business Secretary Clark held talks with GM president Dan Ammann and unite union boss Len McCluskey yesterday and said he was ‘reassured by GM’s intention to build on the success of these operations rather than rationalise them’ – even though GM is in talks to sell the plants.