Peugeot promises all 4,500 workers’ jobs are safe at Vauxhall as it confirms £1.9bn takeover

THE new owners of Vauxhall have pledged to keep the car maker “a true British brand” and said that jobs are safe for now, for 4,500 workers.

PSA Peugeot is paying £1.9 billion for GM Motor’s loss-making European operations which are made up of Opel in Germany and Vauxhall in the UK.

The deal makes PSA the second biggest carmaker in Europe, behind Volkswagen, with a 17 per cent share.

The French car firm has promised to keep union deals on jobs and working conditions, with assurances that Ellesmere Port will continue to build the Astra until at least 2021 and Luton will make the Vivaro van until 2025.

However, union bosses have warned that the long-term survival of the Ellesmere Port and Luton plants depends on securing new models in the next couple of years - something that may be harder to achieve with Brexit.

Carols Tavares, PSA Peugeot’s chief executive has challenged Vauxhall workers to demostrate just how efficient they are.

However, he added he had not shut a factory since he took control of the company in 2014 and had no plans to start now.

The motor industry boss, who used to work for Nissan, also claimed that Brexit could be good for the British car industry as it would force carmakers to source parts from British suppliers.

“A hard Brexit from UK plants will be a nice opportunity in terms of business. This is something that the UK government completely understands,” Tavares said.

Mr Tavares said that PSA Peugeot needed manufacturing in the UK because it sells a lot of cars here.

The deal sees US motor giant GM cut ties with Europe after more than 10 years of losses in the region.

The new deal makes PSA the second biggest car maker in Europe after Volkswagen

Opel has lost $8 billion in Europe since 2010, although it would have made a profit in 2016 had it not been for Brexit.
The Prime Minister’s official spokesman insisted that no specific assurances had been given to Peugeot to secure the future of the UK plants.

However, the PM had made clear to the company that she wanted the “long history of success” at Vauxhall to continue in this country.

Carols Tavares believes that Brexit will benefit the British car industry as car makers in the country will have to source parts from British suppliers

Greg Clarke, Secretary of State for Business, said: “The Government welcomes the assurance by PSA that they will respect the commitments made by GM to Vauxhall’s employees and pensioners. We will continue to engage and work with PSA in the weeks and months ahead to ensure these assurances are kept and will build on the success of both sites for the long term.”

Carols also challenged workers to prove their efficiency in order to increase profits and avoid job cuts

Unite general secretary Len McCluskey said: “I am determined that we can convince the new boss, Mr Tavares, that it makes sense for him to continue to build in Britain.”

Vauxhall’s plant at Ellesmere Port currently imports three quarters of its parts, and exports 80 per cent of its cars to the EU, making it vulnerable to changes in trading conditions with Europe.

Under the deal, GM will keep the pension liabilities of Vauxhall’s pension fund, which has a deficit of about £1 billion.