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Vauxhall sold: Peugeot plays down job cuts and Brexit fears - live updates Vauxhall sold: Peugeot plays down job cuts and Brexit fears - live updates
(35 minutes later)
2.59pm GMT
14:59
General Motors shares have opened lower in early US trading following the deal to sell Opel-Vauxhall to Peugeot.
They are currently down 0.5%, worse than the 0.2% decline on the Dow Jones Industrial Average. The overall market has been hit by a number of new concerns, not least the launch of four missiles by North Korea and Donald Trump’s accusations that his were tapped on the orders of Barack Obama.
Updated
at 3.00pm GMT
2.53pm GMT
14:53
PA also has more comments from Vauxhall workers arriving for work:
Workers clocking in for their afternoon shift at Luton’s Vauxhall plant reacted with a mix of emotions to news of the company’s sale to French group PSA.
Many staff who were yet to start their shift said they only heard about it on the news or online, not from their employer.
Paintshop worker Joshua Taylor, 25, expressed uncertainty over job security, saying: “No-one actually knows what’s going on. We haven’t been told if our jobs are safe.
“I looked over the plants Peugeot bought and it doesn’t look promising.”
James Upton, 26, who has worked at the plant for two years, said: “I’ve had jobs before but this is the one that’s actually stuck.
“Around here, it’s kind of difficult when you go on the Jobcentre websites and you apply for loads of stuff but nothing ever really comes through, and you think ‘I have to go further afield’.”
He said he does not know much about the deal, and described the arrangement by the French car giant as “coming at you fast”.
Asked about the mood among his colleagues, he said: “I haven’t gone in there yet to see how everyone’s reacting but I’m sure they’ll be the same as always.
“As long as people get paid, they’re happy.”
Teresa Carway, 63, is retiring at the end of the week after 39 years of service at the Luton plant, and she said the announcement “couldn’t have come at a better time for me”.
However she said other colleagues who are coming up to their retirement are concerned.
She said: “I think a lot of people are worried because the average age around here is 52 or 53. But if they could get another five, six years out of here, then they can retire.”
Mrs Carway, who works in the bodyshop assembling bolts on van doors, was hopeful for newer staff
“(The plant) have taken on loads of new workers,” she said. “They’ve taken on around 300 young workers in the last year.”
2.50pm GMT
14:50
No specific assurances given to Peugeot - PM's spokesman
More from the prime minister’s spokesman on Vauxhall, courtesy the Press Association:
Mrs May’s official spokesman insisted that no specific assurances had been given to Peugeot to secure the future of the UK plants.
The PM had made clear to the company that she wanted the “long history of success” at Vauxhall to continue in this country, said the spokesman.
But he added: “In terms of specific assurances - none sought, none given.
“We have a stated position that we will ensure the competitiveness of this country when it comes to the supply chain, research and development and trade.”
2.19pm GMT2.19pm GMT
14:1914:19
Summary: Are Vauxhall-Opel jobs really safe?Summary: Are Vauxhall-Opel jobs really safe?
Time for a quick recap, with links to the main points.Time for a quick recap, with links to the main points.
General Motors has denied that job cuts are inevitable after agreeing the sale of its European operations to PSA Group.General Motors has denied that job cuts are inevitable after agreeing the sale of its European operations to PSA Group.
GM is offloading Britain’s Vauxhall and Germany’s Opel to the owner of Peugeot and Citroën, in a €2.2bn deal announced this morning.GM is offloading Britain’s Vauxhall and Germany’s Opel to the owner of Peugeot and Citroën, in a €2.2bn deal announced this morning.
PSA has insisted that staff across its business will get a fair chance to show they can hit productivity targets. CEO Carlos Tavares told reporters in Paris that simply shutting factories down was “rather simplistic”.PSA has insisted that staff across its business will get a fair chance to show they can hit productivity targets. CEO Carlos Tavares told reporters in Paris that simply shutting factories down was “rather simplistic”.
Tavares also pledged to stick to existing deals with Vauxhall workers, and General Motors CEO Mary Barra also claimed that the deal was a win-win for both sides.Tavares also pledged to stick to existing deals with Vauxhall workers, and General Motors CEO Mary Barra also claimed that the deal was a win-win for both sides.
But unions, and individual workers at Vauxhall, are concerned that jobs could be lost - especially if the plants at Ellesmere Port and Luton don’t secure pledges to manufacture new models.But unions, and individual workers at Vauxhall, are concerned that jobs could be lost - especially if the plants at Ellesmere Port and Luton don’t secure pledges to manufacture new models.
Some industry analysts have also predicted job cuts as PSA looks to consolidate its operations.Some industry analysts have also predicted job cuts as PSA looks to consolidate its operations.
The UK government is hopeful that Vauxhall could thrive under PSA’s ownership.The UK government is hopeful that Vauxhall could thrive under PSA’s ownership.
A spokesman for Theresa May told reporters that:A spokesman for Theresa May told reporters that:
The prime minister set out to Ms Barra the importance of the Vauxhall brand to the UK and reiterated her desire for the jobs at both plants to be secured for the long term.The prime minister set out to Ms Barra the importance of the Vauxhall brand to the UK and reiterated her desire for the jobs at both plants to be secured for the long term.
Ms Barra made clear that Vauxhall would remain a British brand and that the deal would recognise and respect all agreements regarding the workforce.Ms Barra made clear that Vauxhall would remain a British brand and that the deal would recognise and respect all agreements regarding the workforce.
Both the prime minister and Ms Barra expressed their confidence that the deal had the potential to strengthen the Vauxhall brand and allow for further growth, supported by the government’s Industrial Strategy and the continued strength of the automotive sector in the UK.Both the prime minister and Ms Barra expressed their confidence that the deal had the potential to strengthen the Vauxhall brand and allow for further growth, supported by the government’s Industrial Strategy and the continued strength of the automotive sector in the UK.
(that’s via our Politics Live blog)(that’s via our Politics Live blog)
Local MPs have also been banging the drum, insisting that Vauxhall plants are already pretty efficient.Local MPs have also been banging the drum, insisting that Vauxhall plants are already pretty efficient.
Labour’s Justin Madders, who represents Ellesmere Port, says:Labour’s Justin Madders, who represents Ellesmere Port, says:
There is no doubt that we have some of the most efficient plants in Europe so we have a good tale to tell and we should not underestimate the positive impact on sales that having a U.K. manufacturing base brings.There is no doubt that we have some of the most efficient plants in Europe so we have a good tale to tell and we should not underestimate the positive impact on sales that having a U.K. manufacturing base brings.
There should be no doubt that one of the biggest selling points to UK consumers is that Vauxhall is a British brand that supports British jobs. That is something that I know will be stressed to PSA.There should be no doubt that one of the biggest selling points to UK consumers is that Vauxhall is a British brand that supports British jobs. That is something that I know will be stressed to PSA.
2.02pm GMT2.02pm GMT
14:0214:02
General Motors was adamant this morning that its European business would have broken even last year, if it wasn’t for the Brexit vote.General Motors was adamant this morning that its European business would have broken even last year, if it wasn’t for the Brexit vote.
As this chart show, that didn’t happen -- although GM has been clawing its way back to profitability since the financial crisis....As this chart show, that didn’t happen -- although GM has been clawing its way back to profitability since the financial crisis....
17 years of GM losses in Europe, all in one chart. Total = $22.5 billion pic.twitter.com/QPkCqnt1mR17 years of GM losses in Europe, all in one chart. Total = $22.5 billion pic.twitter.com/QPkCqnt1mR
2.00pm GMT2.00pm GMT
14:0014:00
Vauxhall workers at Ellesmere Port arrived for work under the glare of TV cameras and photographers this morning:Vauxhall workers at Ellesmere Port arrived for work under the glare of TV cameras and photographers this morning:
1.39pm GMT1.39pm GMT
13:3913:39
Tony Burke, assistant general secretary of the Unite union, doesn’t share John Longworth’s optimism that the car industry will thrive after Brexit.Tony Burke, assistant general secretary of the Unite union, doesn’t share John Longworth’s optimism that the car industry will thrive after Brexit.
If the UK loses membership of the single market, and the customs union, it will also lose the “frictionless” supply chain that allows components to move freely back and forth across the channel, Burke warns.If the UK loses membership of the single market, and the customs union, it will also lose the “frictionless” supply chain that allows components to move freely back and forth across the channel, Burke warns.
He hopes that Theresa May will commit to maintaining membership of the single market and the customs union after Brexit. But if that’s not possible, Unite wants the government will push the ‘reshoring’ of component makers back into the UK.He hopes that Theresa May will commit to maintaining membership of the single market and the customs union after Brexit. But if that’s not possible, Unite wants the government will push the ‘reshoring’ of component makers back into the UK.
Burke also pledges to hold PSA to its promise that factories don’t have to close, following the ‘fantastic’ work done in recent years to make Vauxhall’s plants more efficient.Burke also pledges to hold PSA to its promise that factories don’t have to close, following the ‘fantastic’ work done in recent years to make Vauxhall’s plants more efficient.
1.26pm GMT1.26pm GMT
13:2613:26
John Longworth, who resigned as head of the British Chambers of Commerce last year over his support for Brexit, has denied that the EU referendum vote will hurt the car industry.John Longworth, who resigned as head of the British Chambers of Commerce last year over his support for Brexit, has denied that the EU referendum vote will hurt the car industry.
He tells the World At One that if Britain get a ‘clean break’ from the EU, it could potentially slap import tariffs on cars made in Europe. That would make UK-made Vauxhalls 27% cheaper than comparable models, Longworth argues, boosting domestic demand.He tells the World At One that if Britain get a ‘clean break’ from the EU, it could potentially slap import tariffs on cars made in Europe. That would make UK-made Vauxhalls 27% cheaper than comparable models, Longworth argues, boosting domestic demand.
[Except, of course, the EU would impose reciprocal tariffs, making Vauxhalls much pricier for EU customers].[Except, of course, the EU would impose reciprocal tariffs, making Vauxhalls much pricier for EU customers].
Longworth also argues that Britain can use the money saved on EU budget contributions to make the UK a more attractive place for businesses, perhaps by cutting tax or encouraging investment in R&D.Longworth also argues that Britain can use the money saved on EU budget contributions to make the UK a more attractive place for businesses, perhaps by cutting tax or encouraging investment in R&D.
UpdatedUpdated
at 1.34pm GMTat 1.34pm GMT
1.14pm GMT1.14pm GMT
13:1413:14
Radio 4’s The World At One is looking at the Vauxhall/Opel sale now.Radio 4’s The World At One is looking at the Vauxhall/Opel sale now.
They’ve interviewed several workers at Vauxhall’s Ellesmere Port plant today.They’ve interviewed several workers at Vauxhall’s Ellesmere Port plant today.
One told them:One told them:
I think the deal is a good deal for General Motors and for Vauxhall themselves....but are they [PSA] going to give us a good pension, are they going to take over the General Motors pension scheme that we’ve been paying into for 32 years. Is the money still there?I think the deal is a good deal for General Motors and for Vauxhall themselves....but are they [PSA] going to give us a good pension, are they going to take over the General Motors pension scheme that we’ve been paying into for 32 years. Is the money still there?
Another employee is worried that the Brexit vote means Vauxhall factories are vulnerable if PSA decides to make cuts.Another employee is worried that the Brexit vote means Vauxhall factories are vulnerable if PSA decides to make cuts.
If you have a French factory and a German fatory and they’re all in the EU and one of them’s got to go, what would you say? If you have a French factory and a German factory and they’re all in the EU and one of them’s got to go, what would you say?
A third predicted a ‘devastating impact” on local people and shops if the Ellesmere Port plant closed.A third predicted a ‘devastating impact” on local people and shops if the Ellesmere Port plant closed.
Updated
at 2.54pm GMT
12.45pm GMT12.45pm GMT
12:4512:45
This isn’t great news for Vauxhall workers....This isn’t great news for Vauxhall workers....
Ex-head of @GM Europe tells @itvnews union "right to be worried" about UK plants. "Commitment to current model is no commitment at all".Ex-head of @GM Europe tells @itvnews union "right to be worried" about UK plants. "Commitment to current model is no commitment at all".
12.39pm GMT12.39pm GMT
12:3912:39
Here’s a photo from this morning’s press conference in Paris, as GM CEO Mary Barra (left) and PSA chairman Carlos Tavares (centre) shook hands on today’s deal. Opel CEO Karl-Thomas Neumann is on the right.Here’s a photo from this morning’s press conference in Paris, as GM CEO Mary Barra (left) and PSA chairman Carlos Tavares (centre) shook hands on today’s deal. Opel CEO Karl-Thomas Neumann is on the right.
12.27pm GMT12.27pm GMT
12:2712:27
Theresa May told GM to protect UK jobsTheresa May told GM to protect UK jobs
Theresa May told General Motors yesterday that UK jobs need to be protected, as the carmaker put the finishing touches to the sale of its European arm.Theresa May told General Motors yesterday that UK jobs need to be protected, as the carmaker put the finishing touches to the sale of its European arm.
The prime minister gave the message to GM CEO Mary Barra, who gave some reassurances in response, according to May’s office.The prime minister gave the message to GM CEO Mary Barra, who gave some reassurances in response, according to May’s office.
Here’s the official statement:Here’s the official statement:
The Prime Minister set out to Ms Barra the importance of the Vauxhall brand to the UK and reiterated her desire for the jobs at both plants to be secured for the long term.The Prime Minister set out to Ms Barra the importance of the Vauxhall brand to the UK and reiterated her desire for the jobs at both plants to be secured for the long term.
Ms Barra made clear that Vauxhall would remain a British brand and that the deal would recognise and respect all agreements regarding the workforce.Ms Barra made clear that Vauxhall would remain a British brand and that the deal would recognise and respect all agreements regarding the workforce.
Despite that reassurance, workers in Ellesmere Port are understandably concerned, as the FT’s Andrew Bounds explains:Despite that reassurance, workers in Ellesmere Port are understandably concerned, as the FT’s Andrew Bounds explains:
Ellesmere Port Unite rep John Cooper talks to the media. He says workers are worried but remains optimistic #Vauxhall pic.twitter.com/Jdou6jW7wdEllesmere Port Unite rep John Cooper talks to the media. He says workers are worried but remains optimistic #Vauxhall pic.twitter.com/Jdou6jW7wd
UpdatedUpdated
at 12.28pm GMTat 12.28pm GMT
12.04pm GMT12.04pm GMT
12:0412:04
Greek economy worse than thoughtGreek economy worse than thought
Back in the eurozone.... Greece has suffered another blow in its battle to emerge from its debt crisis.Back in the eurozone.... Greece has suffered another blow in its battle to emerge from its debt crisis.
New figures show that the Greek economy shrank by 1.2% in the final three months of last year. That’s a very sharp decline, and much worse than the initial estimate of a 0.4% fall in GDP.New figures show that the Greek economy shrank by 1.2% in the final three months of last year. That’s a very sharp decline, and much worse than the initial estimate of a 0.4% fall in GDP.
It’s the worst contraction since 2015, when Greek banks were closed and capital controls imposed as the country came close to leaving the eurozone.It’s the worst contraction since 2015, when Greek banks were closed and capital controls imposed as the country came close to leaving the eurozone.
OUCH. Greek GDP shrank 1.2 per cent in fourth quarter - three times worse than a first estimate of 0.4% Worst quarter since 2015 woes pic.twitter.com/si5UGmBwZROUCH. Greek GDP shrank 1.2 per cent in fourth quarter - three times worse than a first estimate of 0.4% Worst quarter since 2015 woes pic.twitter.com/si5UGmBwZR
The figures undermine hopes that the Greek economy was turning the corner.The figures undermine hopes that the Greek economy was turning the corner.
Indeed, Capital Economics are worried that the EU’s forecast for a growth rebound this year looks rather too optimistic.Indeed, Capital Economics are worried that the EU’s forecast for a growth rebound this year looks rather too optimistic.
Huge downward revison to Q4 #Greek q/q GDP growth from -0.4% to -1.2%. Tsipras, IMF & EU say growth will rebound, surveys suggest otherwise pic.twitter.com/ceZpSbs2RJHuge downward revison to Q4 #Greek q/q GDP growth from -0.4% to -1.2%. Tsipras, IMF & EU say growth will rebound, surveys suggest otherwise pic.twitter.com/ceZpSbs2RJ
Something for the Greek government to ponder at today’s cabinet meeting, where ministers will discuss a new growth strategy....Something for the Greek government to ponder at today’s cabinet meeting, where ministers will discuss a new growth strategy....
11.57am GMT11.57am GMT
11:5711:57
Merging Opel and Vauxhall with Peugeot and Citroen could speed up the creation of new auto technologies.Merging Opel and Vauxhall with Peugeot and Citroen could speed up the creation of new auto technologies.
So argues Matt Freeman, managing consultant at cap hpi consulting,So argues Matt Freeman, managing consultant at cap hpi consulting,
“The greater scale the combined PSA-Opel will have for technology investment will see a step change in vehicle development, which requires not only investment in new powertrain technology, but also the development of a wind-down strategy for internal combustion engines.“The greater scale the combined PSA-Opel will have for technology investment will see a step change in vehicle development, which requires not only investment in new powertrain technology, but also the development of a wind-down strategy for internal combustion engines.
Better scale will also create a better negotiating position when dealing with technology providers like Apple and Microsoft.”Better scale will also create a better negotiating position when dealing with technology providers like Apple and Microsoft.”
11.08am GMT11.08am GMT
11:0811:08
Here’s our news story on the sale of Vauxhall and Opel to PSA Group, and its pledge that job cuts can be avoided:Here’s our news story on the sale of Vauxhall and Opel to PSA Group, and its pledge that job cuts can be avoided: