Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News Mexico
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
  • News
    • Photos
    • Automakers
    • Suppliers
    • Sales By Market
    • Environment/Emissions
    • Latest Launches
    • Sales and Retail
    • Car Cutaways
    • On The Move
    • EU, Japan back automatic braking regulation
      German auto jobs at risk from hard Brexit
      Aston Martin to preview SUV for revived Lagonda nameplate at Geneva show
      How VW, Daimler, BMW, others are transforming into tech companies
    • Sweden's Veoneer forecasts flat sales in 2019
      Ionity boss has plan for stations across Europe; he just needs an EV boom
      Moscow's short-term car rental boom highlights threat to automakers from new players
      German auto jobs at risk from hard Brexit
    • Porsche, Alfa Romeo and Nissan take big hits as European sales fall 5% in January
      Russia sales rise nearly 1% in January despite VAT increase
      Audi, Fiat, BMW among losers as Spanish sales fall 8% in January
      Volvo, VW gain sales in UK market down nearly 2% in January as diesel plunge continues
    • Volvo blurs the wagon/SUV line with the V60 Cross Country
      view gallery
      7 photos
      New Range Rover Evoque designed for the 'urban jungle'
      Range Rover Evoque gets hybrid tech to cut emissions
      Tarraco gives Seat a flagship SUV to help retain wealthy buyers
    • Ferrari will unveil V-8 hybrid supercar this year
      Mercedes outsold Audi in China last month on sedan demand
      Tesla's Musk visits Norway to review delivery delays
      Europe's minicar segment to shrink as VW, PSA mull axing their smallest cars
    • Suppliers to the new Porsche Panamera
      Suppliers to the new Peugeot 5008
      Suppliers to the new Seat Ibiza
      Suppliers to the new VW Touareg
    • Daimler appoints Airbus exec as finance chief
      VW China CEO to join VW brand's management board
      Mini USA names marketing veteran McKenna head of product planning
      Dyson hires former Infiniti chief to head its electric-car business
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Auto Shows
    • Geneva Auto Show
    • Frankfurt Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
    • China EV startup Aiways will launch SUV in Europe
      Bentley revs up Bentayga with Speed variant
      Skoda will debut first EV at Geneva show
      VW Passat gets cleaner diesel, partial autonomy
    • Bugatti considers four-door model for 2024
      Frankfurt photo booth
      Frankfurt's best and wurst
      Merkel says German car industry must work to rebuild trust
    • Vietnam's first automaker now has names for first sedan, SUV
      Ferrari Monza supercars will earn $755 million in revenue
      China's GAC likely to debut in Europe with an EV
      Bugatti mulls SUV as part of broader model range
    • VW will launch SOL EV brand in China with subcompact crossover
      view gallery
      9 photos
      BMW's iX3 concept heralds electric expansion
      view gallery
      9 photos
      BMW will export iX3 electric SUV to Europe, U.S. from China
      view gallery
      11 photos
      Mercedes seeks to keep China luxury lead with stretched A class
    • view gallery
      7 photos
      Jeep finds green groove with plug-in hybrid SUV concept
      China's luxury market to grow to 3M a year, Audi, Mercedes predict
      view gallery
      10 photos
      Mercedes hints at new styling with sedan concept
      Foreign automakers embrace China as EV development hub
  • Opinion
    • Blogs
    • Luca Ciferri
    • Douglas A. Bolduc
    • Paul McVeigh
    • Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
      Why the car is no longer the ticket to freedom
    • Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
      Why the car is no longer the ticket to freedom
    • Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
      Why the car is no longer the ticket to freedom
    • Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
      Why the car is no longer the ticket to freedom
  • Maps
    • E-Car & Component Map of Europe
    • Powertrain Map of Europe
    • Assembly Plant Map of Europe
  • Supplements
    • Connected Car
    • Talk From The Top
    • BMW 100
    • Car Cutaways
  • EVENTS & AWARDS
    • Automotive News Europe Congress
    • Rising Stars
    • Eurostars
    • Leading Women
  • E-MAGAZINE
    • Read the latest issue
    • Download the app
    • Subscribe
  • More
    • E-Magazine
    • Contact Us
    • 2019 Media Kit
    • About Us
MENU
Breadcrumb
  1. Home
  2. Automotive News Europe
February 20, 2017 12:00 AM

UK union fears grow over future of GM's Vauxhall plants, report says

Costas Pitas, Gernot Heller and Michael Nienaber
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    LONDON -- The head of Britain's biggest trade union is likely to meet PSA Group CEO Carlos Tavares on Friday amid growing concerns over the future of Vauxhall plants if the French automaker buys the business from General Motors, a union source told Reuters.

    PSA is in talks to buy GM's money-losing European business, which operates under the Vauxhall and Opel brands.

    Overcapacity at existing sites, Britain's move to leave the European Union and pension liabilities all likely to influence any deal and possible restructuring.

    Tavares is due to meet Britain's business minister Greg Clark "toward the end of the week," a government source said, in a key test of Britain's ability to retain investment after its Brexit vote in June.

    German media reports over the weekend suggested PSA had told Berlin it would continue production at all four of Opel's German sites, although Germany's deputy economy minister, Matthias Machnig, said on Monday there had been no binding assurances.

    Machnig said initial talks between the German government, PSA and GM have led to some encouraging signals that jobs at Opel factories will be preserved.

    German newspaper Bild am Sonntag had reported that PSA had pledged to continue operating all four of Opel's German production sites.

    A UK union source said: "We are increasingly concerned after reports that German plants are safe." The head of the UK's Unite trade union, Len McCluskey, is likely to meet Tavares in London on Friday.

    The pensions deficit at GM's British division is up to 1 billion pounds ($1.25 billion), a separate source familiar with the matter told Reuters. Many multinational companies are trying to rein in rising pension liabilities.

    Britain's overwhelmingly foreign-owned car industry has been lauded as a success story by politicians and is set to hit record production levels by the turn of the decade, but any tariffs following Britain's departure from the EU would hit margins and could see output cut.

    Last year, Nissan asked for a pledge of compensation if its plant was hit by Brexit, but went on to invest in two new models after what a source described as a government promise of extra support to counter any loss of competitiveness.

    Prime Minister Theresa May plans to speak with Tavares and is determined to protect Britain's car industry, her spokesman said on Monday. "It's going to be a private conversation. There's been a request for a meeting and we will try to make that meeting happen, but I am not going to go into what the nature of that conversation will be," he told reporters, adding the timing of the meeting depended on "diary compatibility."

    German election

    Germany is heading towards a federal election in September and any major job cuts at Opel could weaken the chances of Chancellor Angela Merkel getting re-elected for a fourth term. Merkel is constantly being updated on the progress of talks between the government and the management of the carmakers, government spokesman Steffen Seibert said during a regular news conference in Berlin on Monday.

    An economy ministry spokesman reiterated the government's main goal was to preserve jobs. He said Berlin was also in contact with the British government and that both countries would not let themselves being played off against each other.

    Germany accounts for half of GM Europe's 38,000 staff, while there are 4,500 in Britain where the company operates under the Vauxhall brand. Two sources close to PSA said last Thursday that job and plant cuts were part of the tie-up talks, with the two Vauxhall sites in Britain in the front line.

    Related Articles
    Why leave Europe's car market? So many reasons.
    PSA may vow to maintain Opel sites as CEO Tavares tours for support
    PSA's takeover plan has analysts puzzled
    Monthly E-Magazine
    Thumbnail
    View latest issue
    See our archive
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Automotive News Europe Monthly E-Magazine

    Sign up to receive your free link to each monthly issue of Automotive News Europe as soon as it's published.

    GET THE E-MAGAZINE
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584


    Email Us

    Resources
    • About us
    • Contact Us
    • 2019 Media Kit
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • News
      • Photos
        • Geneva Photo Gallery
        • Beijing Photo Gallery
        • Frankfurt Photo Gallery
        • Paris Photo Gallery
        • Shanghai Photo Gallery
      • Automakers
      • Suppliers
      • Sales By Market
      • Environment/Emissions
      • Latest Launches
      • Sales and Retail
      • Car Cutaways
      • On The Move
    • Auto Shows
      • Geneva Auto Show
      • Frankfurt Auto Show
      • Paris Auto Show
      • Beijing Auto Show
      • Shanghai Auto Show
    • Opinion
      • Blogs
      • Luca Ciferri
      • Douglas A. Bolduc
      • Paul McVeigh
    • Maps
      • E-Car & Component Map of Europe
      • Powertrain Map of Europe
      • Assembly Plant Map of Europe
    • Supplements
      • Connected Car
      • Talk From The Top
      • BMW 100
      • Car Cutaways
    • EVENTS & AWARDS
      • Automotive News Europe Congress
      • Rising Stars
      • Eurostars
      • Leading Women
    • E-MAGAZINE
      • Read the latest issue
      • Download the app
      • Subscribe
    • More
      • E-Magazine
      • Contact Us
      • 2019 Media Kit
      • About Us