UK 'reassured' by GM on its plans for Vauxhall brand

The Dollar Business Bureau 

UK’s Secretary of State for Business, Energy and Industrial Strategy, Greg Clark, said on Friday that he was ‘reassured’ by American multinational General Motors Company’s (GM) plans for its interests in Europe, including the UK’s Vauxhall, amidst talk of taking over by French car maker PSA Group. 

“There is some way to go in discussions between GM and PSA but I was reassured by GM’s intention, communicated to me, to build on the success of these operations rather than rationalise them,” the Secretary said in a statement. 

Recently, GM had made considerable investments at its Luton and Ellesmere Port plants, he said. 

Clark spoke after a meeting with the President of GM, Dan Ammann in London, when it emerged that PSA Group, which owns the brands Citroen, Peugeot and DS, was in discussions of taking over Opel and Vauxhall, the GM's European brands. 

“I had productive discussions with the GM, where I stressed on the importance and the successful presence of Vauxhall brand in the Britain,” Clark said, while adding that he would remain in close touch with GM and PSA over the coming weeks. 

The Business Secretary will visit Paris on Saturday to have separate meetings with the Industry Minister of France, Christophe Sirugue and PSA Group’s board members, according to a spokeswoman for Clark. 

The potential takeover of the Vauxhall has alarmed trade unions as the auto manufacturer employs around 35,000 people in the UK. 

Len McCluskey, General Secretary of Britain's biggest trade union - Unite, said that following a discussion with Clark that his union would not accept plant closures or any job losses. 

GM's plants in the UK must be provided the similar assurances as given by the government to Japanese carmaker Nissan, he said, as the country’s automobile sector is likely to hit from Brexit. 

In October, Nissan had said that it would continue its investment in its plant at Sunderland after getting assurances about Brexit from the UK government.