Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

Opel jobs: UK union worries but not Germany

Monday, February 20, 2017 - 01:43

There is growing concern over the future of GM's British Vauxhall plants following reports Peugeot has pledged to continue operating all four of GM's German production sites if the deal goes ahead. As Sonia Legg reports, Peugeot Chief Executive Carlos Tavares is due to discuss the deal with Prime Minister Theresa May this week.

▲ Hide Transcript

View Transcript

A new model from Opel - but profits from the sale of the Crossland X could soon be going to a new owner. PSA Peugeot is hoping to buy General Motor's European business. The two firms are already in an alliance in Germany. (SOUNDBITE) (German) EXECUTIVE DIRECTOR SALES, MARKETING & AFTERSALES OPEL GERMANY, JUERGEN KELLER, SAYING: "As part of the alliance GM and PSA regularly check whether there are possibilities for further co-operation to extend this partnership. This includes the possible acquisition of Opel by PSA. But there are no guarantees yet that an agreement will be reached." The potential deal has Germany and Britain worrying about jobs. With Brexit looming Britain's government has been particularly keen to seek assurances over its two GM factories. (SOUNDBITE) (English) GREG CLARK, BRITISH BUSINESS SECRETARY, SAYING: "The PSA executive said they do greatly value the Vauxhall brand and the commitment of its workforce and that any deal would build on these strengths. They also emphasised that their operational approach in recent years has not been to engage in plant closures but to focus on continued improvements in plant performance." Germany's government says it's similarly encouraged. But some fear both can't win when there's already overcapacity in Europe. (SOUNDBITE) (English) JASPER LAWLER, SENIOR MARKET ANALYST, LONDON CAPITAL GROUP, SAYING: "There's a lot of overlap between PSA and the Vauxhall and Opel brands in Europe. Naturally the deal wants to lead to some sort of efficiencies, particularly in the industry that PSA is focussed on - and GM for that matter - the higher volume, lower margin type area of the car market." Britain's Prime Minister will meet with Peugeot's CEO later this week for talks. But Britain's biggest union has already said it fears the two UK two plants could be in the front line.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Opel jobs: UK union worries but not Germany

Monday, February 20, 2017 - 01:43