Concern as Fiat eyes Vauxhall

THE prospect of Vauxhall coming under new ownership has sparked fresh job fears for those working at its Ellesmere Port factory.

Italian manufacturer Fiat is considering merging its car-making operation with the European arm of General Motors, creating a European car giant, it emerged over the weekend.

Trade union Unite said the merger would raise serious concerns over the future of UK Vauxhall plants.

Tony Woodley, joint general secretary of the Unite union, said: “These proposals are not so much a sale as a giveaway.

“Fiat has struggled for years to get back into profit and now they want to swallow two elephants, GM Europe and Chrysler, simultaneously.

“Inevitably, plants will be reduced across the EU if this takeover goes ahead and there are real questions over what this will mean for UK plants where Fiat already owns similar operations. Quite frankly this move sends shivers down my spine.”

Vauxhall employs more than 2,200 workers at Ellesmere Port, with a total of around 5,000 cross the UK.

It is meant to be beginning production of a new Astra model at Ellesmere Port in the next few months but has offered production staff a nine-month sabbatical on 50% pay and has moved to a four-day week in response to plummeting car sales.

It is thought that GM’s European operations have enough money to last only until the end of June and that a buyer would have to be prepared to pump a minimum of £445m into Opel and Vauxhall.

GM has asked the Government for £500m towards a €3.3bn support package from European governments.