Vauxhall sale off after GM U-turn
GENERAL Motors has unexpectedly decided to abort plans to sell Vauxhall and its other European brands.
After months of agonising over the future, Detroit based GM – which has had to be propped-up by US Government aid – said business had improved in recent months and that Vauxhall and sister company Opel were key to its global strategy.
A deal to sell Opel and Vauxhall to Magna International, a Canadian auto parts supplier, was agreed in the summer, and the deal was going through regulatory clearance in Europe ahead of completion.
Union chiefs welcomed the move as the best option for the 5,000 workers at Vauxahll’s Ellesmere Port and Luton plants, but the latest twist to the saga does return some element of uncertainty to the situation.
After tense negotiations between the unions, Magna and the Department of Business, the Canadian group had agreed to safeguard Vauxhall’s long-term future without slashing jobs.
In a statement last night General Motors said it would soon embark on its own restructuring plan.
President and chief executive Fritz Henderson said: ““GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration.
“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 reached today.
“This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”
The Vauxhall factory at Ellesmere Port employs more than 2,000 people. It is one of the most efficient sites in the GM portfolio and recently launched a new Astra model.
Steven Broomhead, chief executive of the North West Development Agency – which supported Vauxhall with a £9m grant to boost training and efficiency said: “It is early days, but I think Vauxhall remaining under the present ownership has to be welcomed.”
He said GM would know better than anyone the strength of Vauxhall and the quality of the Ellesmere Port workforce.
Tony Woodley, the general-secretary of Unite, said of the move: “It is the best decision for Britain and our plants. I am absolutely delighted that GM have finally done the right thing for them and for us.”
