Mandelson positive on Vauxhall future
BUSINESS Secretary Lord Mandelson has conceded some jobs will be lost after yesterday’s sale of General Motors’ European business, but says he is upbeat about the future of the UK Vauxhall plants.
Yesterday Canadian parts group Magna bought a majority stake in the European operations of Vauxhall’s owner General Motors, ending months of speculation.
The move prompted fears among the workforce that the factories at Luton and Ellesmere Port will close.
Lord Mandelson acknowledged there were likely to be job losses but said he believed the new owners were committed to keeping the plants open.
He told the BBC:: “All the workforce, throughout the entire company in Europe will face some restructuring. There’s never been any question about that.
“But if you’re asking me whether I believe that the future of the two UK plants are assured, then I have received that assurance from Magna.”
Unions are still worried over the long-term future of the UK plants.
General secretary of Unite, Tont Woodley said:”Uncertainty surrounding the long-term future of Britain’s car plants will continue.”
Magna said yesterday it was committed to keeping Vauxhall’s Ellesmere Port plant open – where a new Astra model will be built. However, doubts remain about the Luton plant.
The two sites account for most of the firm’s 5,500 UK workforce, with 2,200 at Ellesmere Port.
Magna said it would honour existing contracts at Luton until 2013, but has not given any commitment beyond this point.
