Vauxhall worst scenario
September 10th, 2009 by Richard Aucock
VAUXHALL owner GM Europe has finally been sold to the Canadian group Magna, it has been announced.
German Chancellor Angela Merkel made the announcement, ahead of an Opel Trust statement detailing the specifics.
Some say it is the worst case scenario for Vauxhall. The Magna deal guarantees jobs in Germany – but leaves 10,000 jobs in GM factories across Europe at risk.
Vauxhall employs over 5000 people here in the UK. Magna has guaranteed to close no plants in Germany; no assurances have been made for UK.
The decision to choose Magna is being seen by some as politically influenced. Germany put up 1.5bn Euros, if the Magna deal went ahead. With German elections looming in a few weeks, the timing and result of the announcement are both considered significant.
Other deals on the table included an offer from Belgian group RHJ, while GM could also have kept its European division in-house.
Indeed, up until last night, it was expected GM would take this route, considered the ‘safe’ option. The RHJ deal also indicated a more equal spread of job cuts, with no German guarantees.
Car Dealer Magazine is awaiting further information, expected imminently from the Opel Trust. We’ll be sure to bring you reaction as we get it.
By Richard Aucock
Vauxhall: NO decision yet reached
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