General Motors offers assurances to UK government regarding future of Vauxhall plants - reports
General Motors [NYSE:GM] has offered the UK government assurances over the future of Vauxhall Motors plants, The Guardian reported.
The newspaper quoted UK business secretary Greg Clark, who said he was informed that GM plans to build on Vauxhall’s success rather than rationalise the car manufacturing plants, which are located in Ellesmere Port and Luton, UK.
Clark held a meeting with Dan Ammann, GM chairman, and Len McCluskey, general secretary of the Unite trade union in London on Thursday, 16 February.
Clark’s comment follows previously reported concerns about the future of Vauxhall following GM and PSA Groupe’s [EPA:UG] announcement on Tuesday that they were discussing a possible acquisition of GM’s European business Opel Vauxhall by PSA, a French car manufacturer. Analysts have predicted that the deal will lead to rationalisation of GM’s European business and that the Vauxhall plants are particularly vulnerable to job losses.
GM’s comment was less definitive, however, the item said. The Detroit, Michigan-based car manufacturer said that although it cannot at present offer any “definitive news,” its objective in the talks with PSA is to capitalise on Opel Vauxhall’s success.
The Daily Telegraph reported that Clark was on Thursday night en route to Paris to hold urgent discussions with PSA board members and French industry minister Christophe Siruge regarding Vauxhall’s future. The newspaper did not cite a source for the information. The French government owns 14% of Peugeot, whose parent company is PSA Groupe, the item said.
Link to original source (The Guardian)