Fears remain over UK Vauxhall jobs
- 00:02:32
- ITN
Fears remain over UK Vauxhall jobs
A tentative deal that could save GM Europe and therefore help safeguard British jobs at Vauxhall has been reached. Canadian auto parts group Magna International has agreed a £1.3 billion (1.5 bn euro) deal which now needs rubber stamping by the German government. It comes after Italian car maker Fiat pulled out of talks, leaving Magna as the only possible bidder left. The deal is a key part of the troubled American car group's plans to restructure its business, saving GM Europe going under as a result of its US parent company's expected bankruptcy. The negotiations are seen as crucial in securing British jobs at Vauxhall plants in Luton and Ellesmere Port. Lord Mandelson has insisted he has already received "categorical" assurances that Vauxhall production will continue in the UK, but questions have been raised about why the UK Government has not been represented in German negotiations on bailing out the German GM division, when the outcome could seriously affect UK jobs. Jobs at Opel plants in Germany and Belgium are also at risk and the European Union is holding urgent talks on the matter, with Trade Minister Gareth Thomas is in Brussels to represent Britain's interests. The commission has to approve the terms of any deal German Chancellor Angela Merkel reaches if it involves state aid. Only a fortnight ago the Commission met GM bosses and car industry officials ministers from 12 EU countries, including the UK. Commission vice-president Gunter Verheugen spoke then about the need for any restructuring of GM Europe to "fully respect EU rules".
ITN | May 30, 2009
