Jobs fears in Vauxhall takeover

Published on Saturday 30 May 2009 19:48

THE future of thousands of British car workers remained under threat last night after confirmation that a Russian-Canadian consortium had agreed to take over Vauxhall.

Six hours of high-level talks in Berlin ended early yesterday in an agreement with Canadian car-part maker Magna and Russian bank Sberbank over the European operations of US auto giant General Motors, which includes Opel in Germany and Vauxhall in the UK.

But unions here have warned that the deal is not good news. There are particular concerns over a van plant in Luton, which employs about 1,500 people.

There was intense speculation that some truck and van production might move to a Russian factory owned by billionaire Oleg Deripaska. And German officials were confident no plants would close in that country but between 7,500 and 8,500 job were due to be cut across the rest of Europe.

Tony Woodley, joint leader of Unite, said the Luton plant "has no future". He added: "I know what Magna's plans are about; this news is nothing to shout about."

Business Secretary Lord Mandelson said he was seeking a "very early meeting" with the new owners of Vauxhall to secure concrete guarantees about British jobs. Unions say he should have been at the negotiating table in Berlin.