Vauxhall GM news
GOVERNMENT support is on the table for any new plans to restructure Vauxhall and GM Europe.
Lord Mandelson has today confirmed that he is ‘keen for very early discussions with GM over their plans for the business and how they will affect British plants and workers.
‘I have always said that if the right long term sustainable solution is identified, then the Government would be willing to support this.’
The official support will be a welcome fillip as the car industry digests news of the surprise announcement that GM is to pull out of its deal to sell Vauxhall and Opel to Magna.
It came admit an upturn in the financial state of the company, an improving car market, and continued wranglings over the competitive implications of the deal.
EC Competition Commissioner Neelie Kroes announced in October that she was looking into the deal, amid allegations that German jobs and factories were being given preferential treatment.
The German Government gave €billions in support of GM Europe earlier in the year.
Fritz Henderson, president and CEO said that ‘we understand the complexity and length of this issue has been draining for all involved.
‘However, from the outset, our goal has been to secure the best long term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision.’
Tony Woodley, Unite union secretary general, said the news was ‘fantastic.
‘It is the best decision for Britain and our plants.’
Most industry analysts say the latest news is a much more sensible route for the firm to take. GM Europe is a technology leader for the worldwide firm, and the main GM board appears to have belatedly realised selling this off does not make long-term sense.
It is also better news for UK Vauxhall workers. Now, a more balanced view can be taken on job rationalisation.
For car buyers, it also provides greater confidence in the future of the company, which should help Vauxhall car sales. Retaining the support of a large parent company means owners will have more faith in the brand.
Implications for UK car dealers remain unclear at this early stage, but the general word is good: GM keeping Vauxhall is a better deal for all concerned.
By Richard Aucock