PSA seals £1.9bn takeover of Vauxhall 0

PSA-seals-19bn-takeover-of-VauxhallThe French car giant, the PSA Group, have been confirmed as the new owner of the European wing of General Motors. The deal is expected to be in the region of £1.9bn and includes both the Vauxhall and Opel marques.

The announcement brings to an end weeks of speculation about the possible agreement and its effect on the thousands of employees at the Vauxhall plants both in Luton and Ellesmere Port that together employ 4,500 people.

Len McCluskey, general secretary of the trade union Unite, said the sizable contingent of workers employed by Vauxhall, had endured a “nerve-racking” few weeks.

“While initial discussions with the PSA Group have been relatively positive, our priority now is to ensure a long-term future for our plants and the tens of thousands of workers depending on them,” he said.

Luton South’s Labour MP Gavin Shuker said: “Glad to see the uncertainty over the PSA/GM deal is now over.

“Our UK plants are among the most efficient of any in the new company. They deserve a bright future.

“Now Government needs to play its part, delivering a Brexit deal that keeps Vauxhall building in the UK.”

The new deal will see PSA become the second-largest car manufacturer in Europe, with a 17% overall market share.

“We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround,” said Carlos Tavares, chairman of the managing board of PSA.

“We respect all that Opel/Vauxhall’s talented people have achieved as well as the company’s fine brands and strong heritage. We intend to manage PSA and Opel/Vauxhall capitalising on their respective brand identities.

“Having already created together winning products for the European market, we know that Opel/Vauxhall is the right partner. We see this as a natural extension of our relationship and are eager to take it to the next level.

“We are confident that the Opel/Vauxhall turnaround will significantly accelerate with our support, while respecting the commitments made by GM to the Opel/Vauxhall employees.”

The chairman and chief executive of GM, said the deal created a new opportunity to enhance the long-term performance of the respective companies, saying: “For GM, this represents another major step in the ongoing work that is driving our improved performance and accelerating our momentum.

“We are reshaping our company and delivering consistent, record results for our owners through disciplined capital allocation to our higher-return investments in our core automotive business and in new technologies that are enabling us to lead the future of personal mobility.

“We believe this new chapter puts Opel and Vauxhall in an even stronger position for the long term and we look forward to our participation in the future success and strong value-creation potential of PSA through our economic interest and continued collaboration on current and exciting new projects.”

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