‘Speedy changes’ concerns

Worries over Vauxhall’s future were heightened today (February 23) after it emerged that Carlos Tavares, chief executive of French carmaker PSA Group which owns Peugeot, said he was hoping to implement “speedy” changes after a potential buyout of GM’s European Opel operations.

“When you look at the product plan you see that you can in a quite speedy way implement quite significant synergies,” he said.

Business analysts have taken this to mean that at least some of the 24 plants comprising a future PSA-GM Opel merger would have to close, and the UK’s two Vauxhall plants in Ellesmere Port and Luton are thought to be vulnerable given the economic realities of an impending Brexit.

It is understood that PSA and GM may be aiming to sign a draft agreement as early as next week to end speculation and prevent the news from overshadowing the upcoming Geneva Motor Show, which starts on March 9.

‘Desire to work together’

Although Tavares, who spoke with prime minister Theresa May yesterday evening (February 22) on the telephone, has not yet ruled out job losses, he has said he would respect existing labour agreements and expressed a desire to work together with all stakeholders, including unions.

“We believe there is an opportunity to create a European car champion, resulting from the combination of a French company and German company and without forgetting our UK friends,” Tavares noted. “The best way … is to have unions and governments on your side.”

Unite general secretary Len McCluskey, who will meet with Tavares tomorrow (Friday 24), will use the opportunity to further press the case for maintaining the Vauxhall plants and the tens of thousands of jobs dependent on the business, which includes 4,500 working at the plants in Ellesmere Port and Luton, as well as at a warehouse and head office in Luton.

Additionally, more than 20,000 people work in Vauxhall’s retail network and 7,000 people work in its wider UK supply chain.

McCluskey said that over the last few days “a very concerning picture is emerging here, made more distressing by the constant rumours running in the media.”

“Vauxhall workers and their union Unite have yet to be advised of General Motors’ plans but I say again to both auto makers and the UK government we will not accept any threats to UK plants and jobs,” he affirmed.

“I will be reinforcing this when I meet with Carlos Tavares, the Peugeot head, this Friday,” McCluskey noted. “I will be saying again to him that GM has a unique place in the UK’s marketplace, and that the company’s share of that  market has never been higher so do not mistreat loyal UK workers and customers.”

Indeed, despite the fact that a majority of Vauxhall’s cars are exported to mainland Europe, the UK is still Vauxhall’s largest single market within Europe – and the fifth largest in the world.

The UK’s overall automotive sector is now especially strong – it hit a 17-year production high of 1.7m cars, making the UK Europe’s third most prolific car manufacturer.

‘Very efficient’

And Aston University professor David Bailey, an influential expert on economic restructuring and industrial policy, noted last week that the two Vauxhall plants are “very efficient”.

“Management and workers have pulled out all the stops in recent years to make them successful and flexible and get costs down,” Bailey said, further strengthening the case that McCluskey will be making to Tavares tomorrow.

But if the Vauxhall workforce is to truly have its voice heard, the UK government must be on the frontlines fighting their corner, McCluskey argued.

He highlighted how disappointing it was that the Prime Minister only spoke to Tavares on the phone and was not “able to find the time to meet directly with [him]” as “this would have been the opportunity for her to state that she will give UK plants the same, if not more, backing for the UK plants and the German and French leaders have given their workforces.”

Very little was revealed about the telephone conversation the Prime Minister had with Tavares last night.

A Downing Street spokesperson said only that they discussed “the importance the UK attaches to Vauxhall’s plants at Ellesmere Port and Luton and their shared desire to protect and promote the jobs it supports and what Mr Tavares referred to as the ‘iconic’ Vauxhall brand within the wider group.”

But McCluskey has insisted that the government must go much further.

“We need our government batting hard for our workers, and for Peugeot to understand the importance of building in Britain if you want to sell to Britain,” he said.

Stay tuned on UNITElive for further updates after Len McCluskey meets with Peugeot boss Carlos Tavares tomorrow morning (February 24).