Mandelson is reassured on GM’s sell-off
BUSINESS SECRETARY Lord Mandelson said yesterday he had been given further assurance from just-sold GM Europe that Vauxhall production would not leave the UK, as fears grow over job security at British car plants.
As Canadian-Austrian Magna International buys up Opel and Vauxhall, the European arm of ailing carmaker GM, there are fears that sites could close in the UK, Belgium, Poland and Spain.
But, while GM executives pledged their commitment to keeping Vauxhall production in the UK, Mandelson added that Magna’s acquisition could threaten a vital contract at the Luton plant between Vauxhall and Nissan Renault.
Renault has a contract to build its Traffic van in Luton until 2012, but it could renegotiate the deal under a clause which allows the company to end its ties if the plant’s ownership changes.
“These are among the many and details specifics of Magna’s plans that we have to discuss with them and tie down,” Mandelson said.
“If they want British government to help underwrite this new company going forward, they are going to have to demonstrate what’s in this new arrangement for Britain, for British production and British workers.”
Mandelson has welcomed the deal from Magna, but unions say Magna’s acquisition will lead to job cuts in the UK, while German plants are saved.
Germany, which hosted the talks between bidders and GM, had a say in the final buyer. It is providing GM with an emergency £1.3bn loan while it sells off Opel and Vauxhall.
Magna has Russian backing for its purchase.