PSA Peugeot Citroen boss on the future of Vauxhall plants reassures - economy
Peugeot boss to meet with ministers and unions on Vauxhall jobs fears.
G reg Clark, the secretary of state for business, is to meet Carlos Tavares, CEO of French automaker Peugeot on Friday hoping to get a lifeline for 4,500 jobs at two plants in the United Vauxhall -United.
Peugeot is in talks with US giant General Motors to buy GM strongly deficit Vauxhall and Opel brands in a case seen as a value of about 2 billion 6bn 1 However, there are fears for the future of Vauxhall production staff 4500 Ellesmere Port and Luton if a deal is agreed, with Peugeot should look for savings it tries to turn companies around.
labor legislation in the UK it is easier to make staff redundant Vauxhall Opel than their counterparts in continental Europe M. Tavares spoke with Theresa May, the Prime Minister, on Wednesday on the future of Vauxhall as part a combined company, but today's talks will strengthen the British government's concerns.
The Unite union will meet with M. Tavares to clarify her fears Len McCluskey, general secretary of Unite, warned M. Tavares not to mistreat workers and loyal customers in the UK Mr. McClusky said GM had a unique place in the market British.
He said a very worrying picture emerging here Vauxhall workers have yet to be informed of the plans from GM But I say to both automakers and the government of the UK, we will not accept any threat to plants and jobs UK.
M. Tavares, speaking as Peugeot unveiled ysterday record annual results, offered little comfort for staff Vauxhall on their long-term future, he said that the Vauxhall and Opel brands GM burned through $ 1 billion cash per year and have red ink for 10 years the situation is sustainable.
M. Tavares said he had a remarkably mature interviews with staff, unions and politicians in countries where Opel and Vauxhall have a presence on what the future of brands, suggesting that layoffs could be on the road if a purchase is agreed, he said his company would honor existing employment offers, but refused to be drawn beyond We want to help if you step back, everybody has interest in the work of business, he said.
But everyone knows the situation with Opel will not last forever.
Peugeot chief Carlos Tavares said GM's European operations may not continue to make red ink.
R eferring mainly Opel with only passing references to Vauxhall, M. Tavares said they have a problem, they are not silver Opel knows this will not last forever, companies have an interest in solving this end, they will too small and will need someone to support.
Apparently rejecting the idea that Vauxhall and Opel could function without a greater relative, he added, they will need access to new technologies, drive trains, autonomous systems - how will they get that s' they are alone they need a solution.
There are 4,500 staff employed concerns the production of Vauxhall vehicles in factories in Ellesmere Port and Luton would be in the firing line if an agreement was agreed that s because labor laws in Britain it is easier to get rid of employees as part of a wider company looking to save money and increase profitability.
However, M. Tavares seems to offer little hope for the Vauxhall staff, saying that many customers were put out to buy French cars.
Adding the iconic brand Vauxhall Peugeot team open up new sales opportunities for his company French cars have a historical reputation for being unreliable among British buyers.
He added that Opel, which has most of its 38,000 European workforce in Germany, where its technical center is located, has a halo effect on the reputation of Germany for quality engineering.
annual sales of 54 billion is down 1 1pc the previous year Operating income of Peugeot was 18pc higher than 3 25 billion two were ahead of analysts' expectations and highlight recovery in M. Tavares after Peugeot - which also owns Citroën - came close to bankruptcy in 2014 and had to be bailed out by the french government, which owns 14pc of the company.
Peugeot boss to meet with ministers and unions on Vauxhall jobs fears, Peugeot boss, meet.