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Vauxhall 'committed' to UK sites

Date: 1/6/2009 01:49:29

Search: Vauxhall Mandelson

Business Secretary Lord Mandelson has said he had received a "firm" commitment that Vauxhall production will continue in the UK, but conceded a rescue deal contains no details of job losses.

Union bosses and MPs have warned that the deal to save Vauxhall and its sister company Opel could see German jobs safeguarded ahead of those in the UK.

Canadian car parts firm Magna has agreed to take over the European arm of General Motors as the stricken car giant prepares to file for bankruptcy in the United States.

But with Germany taking a lead in the negotiations - about half of GM Europe's 50,000 workers are employed there - concerns have been expressed that jobs at Vauxhall's sites in Luton and Ellesmere Port will be sacrificed under the new regime.

Lord Mandelson said everybody determined to protect Vauxhall could breathe a "huge sigh of relief" now that a deal for GM's European operations had been struck.

Magna's bosses had given a commitment to continue Vauxhall production in the UK, he said, but had given no details as to how long or whether job losses would follow.

"We will have to see as Magna itself becomes more specific what the implications are," Lord Mandelson said.

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"But one thing I can say is this - we have in Ellesmere Port and Luton very good plants, a first-rate workforce, high productivity.

"I have spoken to the senior executives of General Motors in Europe and again I have got their commitment reaffirmed to me as I did previously in the previous week with Magna that their commitment to Vauxhall production continuing in the United Kingdom is firm.

"But we have got now to pin down specific plans and specific implications for jobs."

2012 © Press Association

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