Vauxhall job losses likely

General Motors has announced that control of its Vauxhall and Opel brands will go to Canadian car parts firm Magna International and its partner Sberbank. The announcement finally confirms the protracted sale and restructuring of GM's European arm, though some details are yet to be completed.

However, trade union Unite, which represents workers at Vauxhall's two UK car plants, has voiced concern over job losses, particularly in light of a deal struck by the German Government to support Magna's bid in exchange for assurances about jobs in Germany.

Business Secretary Lord Mandelson is playing down fears that the Luton and Ellesmere plants will close, though he admits that job losses are likely. Magna has assured the German Government that none of its plants will close, but has only guaranteed that Luton will stay open until 2013, based on an existing contract to build the Vivaro van.

Lord Mandelson has pledged Government money to safeguard the factories, but would not disclose the details of discussions with Magna and General Motors. GM itself has stayed silent on specific restructuring plans, but has said that 'the current portfolio of Opel/Vauxhall cars and the models in the pipeline are a strong basis for future success'. There are currently 5,500 workers between the two UK plants.

Mark Nichol