AM Online

Mandelson confident UK Vauxhall plants will stay open

Business Secretary Lord Mandelson is upbeat over the future of UK Vauxhall plants following the successful bid for GM Europe by Magna.

Mandelson has acknowledged there are likely to be job losses at Vauxhall’s Luton and Ellesmere Port factories but said he believes Magna are committed to keeping them open.

Mandelson 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."

Magna, a Canadian car parts maker and Russian bank Sberbank, will own 55% of GM Europe under the new deal. GM will keep 35% and the company’s own workers will own 10%.

Magna has said it wants to continue production at both British factories but would not commit to keeping Luton open beyond 2013.

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Comment as guest


Login  /  Register

Comments

No comments have been made yet.