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Vauxhall staff facing uncertain future as takeover talks stall
Jonathan Prynn, Consumer Business Editor28.05.09
Thousands of Vauxhall jobs hang in the balance today after a meeting about the future of its
stricken owner broke up without a rescue deal.
The German government had been due this morning to name a preferred bidder for the European
arm of General Motors, Vauxhall's US parent company, which is facing bankruptcy.
However, the all-night talks, which involved German chancellor Angela Merkel, broke down after one of the three bidders pulled out and the other two said they needed more information
from GM and the US Treasury.
Italian car giant Fiat and Canadian car-parts maker Magna International are the two remaining bidders for Vauxhall and the other major GM business in Europe, Opel, following the withdrawal of US investor Ripplewood Holdings.
The delay left 5,000 Vauxhall workers at factories in Luton and Ellesmere Port, Cheshire,
not knowing if they will keep their jobs, sparking a row over the Government's efforts to save them. There are fears the German government could give in to election-year pressure with a
pledge to protect domestic jobs at the expense of British ones.
Berlin is being asked to make billions of euros of loan guarantees as part of any deal and Opel
has its headquarters in Germany, where half of the firm's 25,000 workers are based.
Business Secretary Lord Mandelson was accused by union bosses of “not doing enough” to save British GM jobs.
Tony Woodley, joint general secretary of Unite, said: “It is crucial we don't sit back on the
sidelines allowing the German government or somebody else to look after our plant's interests. If you are asking me, is this Government physically, genuinely, actively doing enough, then the answer is definitely no.”
Lord Mandelson has conceded British jobs are likely to be lost but insisted the Government
was doing everything it could.
He has held talks with bidders and offered to consider “financial underwriting” of any deal.
The peer said: “I have been working very hard for the last three or four months on the issue of General Motors.”
Pressure to agree a deal is building ahead of a 1 June restructuring deadline for GM set by the US government.
Reader views (8)
You all forget the main point.
These cars are Rubbish – who would buy them?
- Sean Dempsey, hayes london.
Am I alone in thinking Mandleson had not grasped that whilst General Motors is the parent US Company, Opel is very much the 'sub-parent' in Europe. It was Opel talking to the Germans and Opel who will take all the decisions about UK based Vauxhall. He just might of let down Vauxhall (and suppliers) employees by not really understanding the corporate structure, I think he should have been at that meeting yesterday, even though it seems to have stalled eventually the new set up will be beyond Vauxhall control and dominated by Opel and the German Government - not good at all..
- Mark, Bournemouth, England
No. Why should our govt blindly follow the Germans into propping up a sick, wasteful company like this? If my business goes bust, that's it. I don't go looking for a handout. Nonsense, Tony Woodley. This is our money the govt is spending. They should not be throwing it down a black hole. Vauxhall had plenty of time to rationalise its existing operations and start innovating in green technology. It didn't bother doing so. Why should we all pay for them? Where will it all end?
- Je, London
Katie the public does not want to be in Europe, the MP's do for the most excellent gravy train.
The problem with the motoring sector is a fact cars are more reliable than before, thus demand is decreasing, I suspect even without the recession consolidation would have had to have happened and is in fact already taking place look at Germany and VW has joined forces with Audi and skoda etc. The unions have killed the motor car sector none more so than in this country. GM should go bust as well as many others. This will allow them to remove the unions and pensions and to concentrate on producing oil free cars killing off the power held within russia and the middle east and saving us millions in expensive fuel still creeping up every day and tax like nothing else on earth
- Gary, brentwood
As Mandy is an expressed part of the liberal elite and a euorophile/ free markiteer. I do not believe his hollow promises.
He and Nu Labour (Ton' and Gordy)have done nothing for industry or manufacturing in the UK for all their tenure-following their Icon- Maggies lead.
All of them notable for not working in either industry or manufacturing, and in Mandy's case keeping politics in the family. From what I read he is following closly in his grandfathers illustrious footsteps.
Roll on the euro elections- The agreement the germans will undoubtably come to in this matter- retaining their workforce whilst making thousands redundant in the UK and Spain. Just adds to the arguement to leave Europe
- Katie, Swansea, Wales
German Gov. loan guarantees will save their 25,000 workers and the British will go to the wall.
Talking of a wall?
Mandy doing what the labour government is best at?
Sitting on that wall, as usual, doing nothing?
- P. C., rainham. essex.
Visteon went bust and Mandy did nowt. Unless you are Scotish, a bank or an MP labour will not move one muscle to help.
- Ge, Republic of Cornwall
Another UK industry goes down. Nu Labor's Crash Gordon has failed us economically and socially with his tax and waste policies...
- Georgie, Islington, London
