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Thousands of British carmaking jobs are under severe threat today as it emerged a Fiat takeover of Vauxhall could lead to the closure of either or both of its Luton and Merseyside factories.
The Italian car giant has revealed plans to take over the European arm of struggling US giant General Motors.
Today, it emerged Fiat's bosses are secretly planning huge redundancies and site closures in the UK, in its home market in Italy and in Germany, home of Vauxhall's sister company Opel.
After talks between Fiat chief executive Sergio Marchionne and top German trade unionist Klaus Franz, the workers' leader said Fiat's plans include the closure of "manufacturing sites in England and Italy" and of an engine-making plant in Germany.
That firmly puts the spotlight on Vauxhall's Ellesmere Port factory, which employs 2700 people making the Astra.
It could also affect the future of GM's Luton plant, which is a joint venture with Isuzu of Japan and employs nearly 2000 people making the Vauxhall Vivaro van.
The German trade unionist said the Italian carmaker's boss plans job cuts of up to 10,000 across Europe.
Tony Woodley, a former Ellesmere Port worker and general secretary of industrial union Unite, said: "Inevitably, plants will be reduced across the European Union if this takeover goes ahead. This move sends shivers down my spine."
The closure of Vauxhall plants in the UK would be another hammer blow to the British motor industry, where large foreign-owned employers such as Honda in Swindon, Nissan in the North-East and Jaguar Land Rover in the Midlands have been mothballing plants, and laying off workers or putting them on short-time.
Most recent figures on UK car sales have revealed a 30% slump. Leading motor dealers suc as the Stratstone and Evans Halshaw group Pendragon, Lookers and Inchcape continue to trade only after massive rescue refinancings. But Fiat plans are by no means guaranteed to be successful.
In addition to buying GM Europe, the Italian group which is also behind the Ferrari and Alfa Romeo marques, is aiming to take control of US car giant Chrysler.
Creditors of Chrysler are marshalling forces to prevent the deal while the GM Europe plan is being derided as a bailout that will end up being financed by the US and German governments.
Reader views (5)
When vauxhall in luton closed a large number of the workforce went to work for the commercial vehicle plant next door.We made the midi vans,the rascal and the vauxhall frontera.We are still there and currently build the vauxhall vivaro.So to Mcw of london Yes there will be significant job losses of about 2000 people so i say no to fiat.
- Rmb,Luton, luton beds uk, 07/05/2009 15:41
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The government should buy it; then we can stop importing cars; then turn Vauxhall over to electric car production.
Then they could give us all a free electric car to help stop global warming; any costs involved should be paid by the Banks; as a thank you to us all for taking them over.
A bit like Hitler did with his VW for the people.
If I was Gordon Brown; I would win the next election by a landslide; all it takes is thought, and creative accounting.
- Mickyinlondon, london, 06/05/2009 09:54
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I'm from Luton where Vauxhalls were made from around 1905 but as far as I'm aware Vauxhall Motors has not existed in Luton since around 2002. Certainly there has been no car production in Luton since around that time and prior to that it was pure assembly of parts manufactured elsewhere. Production in Luton had been in decline since the 1970s so there are unlikely to be many, if any, significant job losses in Luton.
- Mcw, London, 06/05/2009 09:04
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Mr Woodley implies that there's a better way forward, and I'm sure he wouldn't be asking for tax-payers' money in these difficult times.
Perhaps Unite and the other European unions have the clout to raise the money to buy GM's European operations and run them at a profit, since he doesn't trust FIAT's motives. All the benefits would then go to his hard-working members, committed as never before to the success of their companies. What could possibly go wrong?
- Mdj E10, london uk, 05/05/2009 13:41
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This Fiat/Chrysler/EuroGM project unfortunately may have the makings of a 21st Century Euro version of British Leyland. Its difficult to see the value of Vauxhall in such an arrangment except for Fiat to require the UK govt to provide heavy subsidies and other incentives to maintain jobs. I would assume manufacturing of the mid-upper range vehicles to consolidate at Opel, and the German govt subsidies to be greater and more worthwhile to Fiat than any offer from the UK. Perhaps van production at Luton may be maintained. Perhaps the UK, Germany and Sweden should jointly explore alternate options to a sale of GM's Euro companies to Fiat/Chrysler.
- John W, Ottawa, Canada, 05/05/2009 12:03
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