Union boss calls for PSA Group to 'continue to build in Britain' following £1.9bn purchase of Vauxhall

On Monday (March 6th) it was announced that PSA Group, the owner of Peugeot and Citroen, has agreed to buy General Motors’ European operations, including Opel and Vauxhall, for £1.9bn.

As part of the deal, the French company has acquired the Vauxhall Motors factories in Ellesmere Port and Luton, where the Vivaro van is produced.

GM Europe, which hasn’t made a profit since 1999, employs around 4,500 people at its UK plants.

Following the purchase of GM’s Opel and Vauxhall operations, PSA Group will become the second-largest carmaker in Europe after Volkswagen.

Since this announcement was made, employees have raised concerns over the future of their jobs, but Unite general secretary Len McCluskey insists that it “makes sense” for Carlos Tavares, PSA’s chief executive, “to continue to build in Britain.”

Len McCluskey said: “This has obviously been a very difficult time for the workforce, but their union has been and will continue to work day and night to fight for their interests.

“Now that General Motors has disposed of its UK sites, our focus switches to working with the new owners to persuade them of the evident merits of our plants and this excellent, loyal workforce.

“I am determined that we can convince the new boss, Mr Tavares, that it makes sense for him to continue to build in Britain. Our plants are the most productive in the European operation, the brand is strong here, the market for the products is here, so the cars must be made here.

“But there is also a role for the government to play. The uncertainty caused by Brexit is harming the UK auto sector. Wednesday’s Budget is a perfect opportunity for the government to make is clear that it will preserve our trading arrangements and that it will invest for our auto sector’s future now, beginning with assistance for the reshoring of components.

“We need every assistance from the government to give this sector a fighting chance. That absolutely includes committing now to securing access to the single market and customs union. This is the signal that the car industry needs in order to know that the UK government values this sector.”