GM sells Vauxhall: Luton workers react to the news
- 00:00:40
- ITN
GM sells Vauxhall: Luton workers react to the news
General Motors has decided to sell its European arm prompting fears for thousands of Vauxhall jobs in the UK. The motor giant has agreed that Canadian car parts firm Magna is their preferred bidder for Opel and its sister company Vauxhall. The decision is a blow to British unions. They warn the move could spell job losses among 5,500 workers at plants in the UK. Business Minister Pat McFadden is trying to stay positive. He said: "We will now continue our discussions with Magna: they have told us of their commitment to continuing production at both Ellesmere Port and Luton and we will work to make sure we get the best possible outcome for the UK." The Unite union is calling on the Government to give Magna financial support to try and secure British jobs. The deal is being welcomed by German Chancellor Angela Merkel as it is likely to secure 25,000 jobs at four plants in the country. Under the terms of the agreement, Magna - backed by Sberbank - would purchase a 55 per cent stake in New Open, GM would hold a 35 per cent stake and employees would be provided with a 10 per cent stake. The decision to sell has to be ratified by the Opel Trust, made up of representatives from GM, the German federal government and the German states that contain the Opel plants.
ITN | September 10, 2009
