Future of Vauxhall Motors in doubt
Despite indications that Lord Mandelson was travelling to Berlin to obtain definitive guarantees over UK jobs with Vauxhall, it appears as though the deal with Canadian company Magna may be in difficulty. The German authorities, who have taken over the GM Europe situation, are said to be in talks with Chinese and other potential investors with regards to the GM Europe subsidiary. Initially it did look as though the Magna deal was all done and dusted but over the last few days doubts have started to appear and there is concern in some quarters about the viability of the Magna business plan. So what does this mean for UK Vauxhall workers?
Unfortunately, until the deal is signed, sealed and delivered there is very little in the way guarantees which the UK government can offer. There were indications that the UK authorities were looking to invest over £350 million of UK taxpayer's money in the UK operation but this has been put on ice until the situation is clearer. Uncertainty can be a killer in the UK car industry, as we saw with LDV, and unions and workers alike are on standby waiting for the next announcement regarding GM Europe.
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