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Fresh fears for the future of Vauxhall jobs

Written By Faye Sunderland Published On: Jun 15 2009
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The future of Vauxhall’s 5,000 or so employees is once again in doubt as Magna International the preferred bidder for the sale of GM’s European Operations failed to submit clear plans for the takeover.After meetings in Berlin last week, German Minister and the British Business Secretary, Lord Mandelson were quick to state that they had only received a memorandum of understanding (MOU) from the Canadian car parts manufacturer.Lord Mandelson told The Times: “It is impossible to predict conclusively if the memorandum of understanding that we have now will translate into final agreement. We hope it will.”The failure to yet finalise a deal with Magna could leave the door open for another bid from Fiat. It is understood that the Italian carmaker is still interested in buying General Motors Europe which controls the German-based Opel and UK-based Vauxhall marques.Vauxhall operates two plants in the UK, one in Luton and another in Ellesmere Port.Magna has already hinted that a takeover of GM Europe would result in job losses as part of a ‘restructuring processes’ designed to slash debts.Mandelson is set to meet with Magna International today, to discuss the future for Vauxhall.

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