Company: Peugeot to buy GM # 39; s Opel, creating the second European car manufacturer
The French company Peugeot and Citroën has hit a Feb. 2 billion 1 9 billion deal to buy General Motors' European unit including Vauxhall.
GM Europe has not made a profit since 1999 and the case has raised fears about job losses at Vauxhall.
Factories UK Ellesmere Port and Luton employ about 4500 people.
With the Opel and Vauxhall operations of GM, PSA Group become the second largest automaker in Europe, behind Volkswagen.
In a statement Carlos Tavares, chairman of the General Council of PSA, said We believe that the Opel Vauxhall recovery will accelerate significantly with our support, while respecting the commitments made by GM for Opel Vauxhall employees.
PSA said it would return its Opel and Vauxhall brand for profit, and should make savings of 1 year by 47 billion in 2026, with most of the 2020 cuts.
M. Tavares told the BBC that he trusted the staff Vauxhall work constructively with PSA to improve their performance.
As long as we improve performance and become the best, there is no risk that they should fear.
A worker at Ellesmere Port Vauxhall plant in Cheshire told reporters this morning, I think the agreement is good for current employees and GM Vauxhall, but is there a future for young workers after 2021.
Next year PSA will decide where it will make the next generation of Astra cars currently in the UK in the context of Brexit negotiations.
Len McCluskey, general secretary of Unite, said the union would continue to work day and night to fight for the Vauxhall staff at plants in Luton and Ellesmere Port.
Thousands more workers are involved in Vauxhall showrooms and the supply chain.
The current model Astra in Ellesmere Port is up 2020 2021, but really is this time next year, perhaps in the middle of next year, when we need to get the acceptance of a new model it .
My appeal to the government is to ensure that our government is at the table, like the French and German governments will, for their workforce hitters said Mr McCluskey.
He became the Prime Minister Theresa May spoke with the CEO of GM, Mary Barra Sunday when she reiterated that she wanted jobs at both plants to secure the long term.
In a statement, Ms May's office said Ms. Barra explained that Vauxhall would remain a British brand and the agreement recognizes and respects all agreements on labor.
Legend Media boss of PSA I trust Vauxhall workers to improve their performance.
But former Secretary Sir cable business Vince expressed concerns about the job because the government lacks commitment to the customs union and the single market.
automotive components have to go back and forth across borders and they will gain rates and checks.
And Vauxhall is particularly exposed to this, as 80 of its exports to the European Union.
And if you are a car head leader looking tough competitive Britain against the German plants, Great Britain, I fear, will slide down the rankings in the future.
Professor Peter Wells of Cardiff Business School, said Carlos Tavares PSA has targeted savings of 2 billion per year so something had to give.
PSA inherit quite a mess, and out of this mess they will have to do something that is viable in the future.
GM Chairman and CEO Mary Barra said it had been a difficult decision to sell Opel and Vauxhall, and insisted the company would have broken even in 2016 had it not been for the decision of the United Kingdom to leave the European Union, which caused a sharp decline in the value of the pound.
PSA says it will reduce costs to increase profits, which has fueled concerns over 4,000 Vauxhall jobs in the UK.
The new owners have met with the government and trade unions last week and assurance provided that the existing production commitments would be honored in Ellesmere Port and Luton until 2020 for some years beyond.
However, it is generally accepted that 24 factories of the combined company will be in Europe too.
The agreement is an output for GM Europe, which lost billions here since the beginning of the millennium, it will allow them to focus on the domestic market of the United States and its activities expanding in China.
PSA said many countries are reluctant to buy French cars and the Opel brand will help develop new markets.
The Chancellor will be an additional motivation to be in favor of the automobile industry when he delivers the budget Wednesday, he is expected to announce investment in skills, research and development in electric car technology in which PSA has until now late compared to rivals.
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