Crunch time for Vauxhall in the UK
UK unions are set to hold high-level talks with General Motors with regards to the future of the General Motors Europe subsidiary, Vauxhall, in the UK. The meeting will also be attended by Lord Mandelson who has taken a watching brief over the situation since the subsidiary was taken off the market and retained in-house by General Motors. It is believed that the UK government is willing to come forward with significant investment into the operation in the shape of taxpayer subsidies.
This is a crucial time for the UK government, Vauxhall and Vauxhall workers because next month will see a final decision on the future layout of the General Motors Europe subsidiary which will directly impact upon UK workers at the company's Vauxhall operations. While the move to retain General Motors Europe within the overall General Motors group surprised many, there is a feeling that at some stage the division will be sold off and with the worldwide economy showing signs of recovery it is possible that General Motors could obtain a better price further down the line.
On the downside, it seems inevitable there will be job cuts across the GM Europe division but the UK government and the unions are prepared to fight tooth and nail to save as many jobs as possible.
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