British labour body, Unite, is urging the UK government to match any political or financial commitment made by Berlin or Paris to Opel plants as PSA Groupe pushes the possibility of creating “a European champion with French-German roots.”
PSA’s proposed acquisition of current General Motors subsidiary, Opel and its British operations has thrown up questions as to Vauxhall’s place in any merged business, with Unite general secretary, Len McCluskey, due to meet PSA CEO, Carlos Tavares this week to discuss any implications for the 4,500 staff based in the UK.
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Opel/Vauxhall operates two vehicle manufacturing plants in the UK: Ellesmere Port (near Liverpool in the north of England) and Luton (around 30 miles north of London), with the former site the lead European production centre for the Astra model.
“These are very anxious days for the thousands of skilled men and women in Vauxhall, and the working class communities relying on GM’s supply chain for their livelihoods,” said McCluskey.
“So it was helpful to hear Greg Clark update the Commons [British Parliament] on developments. It is absolutely vital GM and Peugeot understand the UK government is prepared to move heaven and earth to safeguard our plants.
“I repeat, the UK government must match, if not more, whatever political and financial support the French and German governments are giving their plants and workers.
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By GlobalData“It was also excellent to hear the Business Secretary acknowledge size of the UK market for GM. Vauxhall is a quintessentially British brand with a century-long history of building cars in this country.
“That history, this workforce and generations of customer loyalty has ensured the UK is GM’s single biggest European market by a significant margin – any buyer must understand you will not be allowed to cherry pick the UK market while closing British plants.”
Earlier this week, (20 February) Tavares met German union, IG Metall chairman, Jörg Hofmann and Opel/Vauxhall European Works Council chairman, Wolfgang Schäfer-Klug, where the thorny issues of “site protection and job guarantees” were raised, although no details of those topics have yet been revealed.
However, in comments some in the UK may view as slightly alarming, PSA noted it would work with the European Works Council and IG Metall to create “a European champion with French-German roots.”
Schäfer-Klug added: “This commitment and the agreement of a further negotiation process provides the basis of further talks with PSA. Tavares communicated convincingly in the talks he is interested in a sustainable development for Opel/Vauxhall as an independent company.
“This interest is shared by us, the employee representatives. Thus, we are ready to explore further the chances of a potential coming together.”
German Chancellor, Angela Merkel’s office noted she was “following all the steps” concerning Opel’s future and did not say no to holding personal talks, but for the moment was devolving responsibly to relevant Ministries.
“The Federal Chancellor, of course, is not ruling out the possibility of holding talks at her level, but for now the responsible ministers are tackling the issue,” said a German government spokesman, who confirmed the departments of Economic Affairs, Transport and Labour were involved.
“These talks are quite urgent,” added the spokesman. “The Federal Government attaches great importance to a successful future for the company and its sites.”
According to the spokesman, PSA had previously offered to discuss the possible takeover of Opel with the Chancellor and now wants to meet the German Premier, although no date has been confirmed.
Evidence the issue is rapidly gaining political traction at the highest levels, also came from the Unite union chief, who stressed British Prime Minister, Theresa May should make a joint plea to both PSA and General Motors
“I urge the Prime Minister to join me in making one, common call to both Peugeot CEO Carlos Tavares, and to General Motors,” said McCluskey.
“Quite simply it is this, support British jobs to keep your place in the British market. These are the points I will certainly be making when I meet Mr Tavares later this week.”
See also: Will PSA take on GM’s European operations?
