‘Stay strong, stay united’ says GS

French carmaker PSA – which produces Peugeot, Citroen and DS cars – confirmed today (February 14) that it is considering taking over General Motors (GM) Opel business in Europe, which includes its UK affiliate Vauxhall.

The  news raises questions for the 35,000-strong Vauxhall UK workforce, which includes 4,500 working in manufacturing sites in Ellesmere Port and Luton, as well as at a warehouse and head office in Luton.

The Luton customer service centre employs 300, with an additional 120 people working at its On Star headquarters. More than 20,000 people work in Vauxhall’s retail network and 7,000 people work in its wider UK supply chain.

At the Ellesmere Port plant, Vauxhall uses steel from Port Talbot to produce its cars. The outer body panels of the new Vauxhall Astra, for example, are made with advanced full finished steel from Port Talbot, as is the car’s chassis, which uses low-weight steels from the Welsh steel plant.

PSA company spokesman Bertrand Blaise confirmed the news that the French company would be seeking a potential deal with GM, saying that it is “exploring a number of strategic initiatives with GM with the aim of increasing its profitability and operating efficiency, including a potential acquisition of Opel.”

But he added that there can be no assurance that a deal would be reached.

The announcement comes in the wake of GM reporting losses of more than ÂŁ250m from its European business last year.

After the US-based GM filed for bankruptcy in 2009, it considered selling its European operations but decided against it in order to maintain a strong presence in Europe.

Unite general secretary Len McCluskey told BBC News (pictured below) he was “really disappointed” of “how news of these talks” emerged.

“I am really disappointed with and actually how news of these talks has emerged.  The GM President gave me his personal assurances towards the end of last year that there would be no surprises in terms of our plants’ futures.

“But while this has come out of the blue, we are absolutely determined – UK plants will not be allowed to close,” he said. “I have no intention of allowing GM to walk away from our plants and workers.

“So my message to the workers at Luton, Ellesmere Port and the tens of thousands in the wider supply chain is this – remain strong and stay united.  The UK and the EU are among GM’s biggest markets – if they think that they can walk away from dedicated workers and loyal consumers without a care, they need to think again.

“I also have a message to the UK government, which is do not sit on the side-lines.  Intervene, work with us to create a new future for these plants.  The French government certainly is not sitting idle – they have a 13 per cent stake in Peugeot and they have given their blessing to this deal.  We want UK auto workers to feel the same sense that their government is backing them.”

• Pic by Martin Scanlon