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You can find the current article at its original source at https://www.theguardian.com/business/live/2017/mar/06/vauxhall-opel-sold-jobs-deal-aberdeen-standard-live-business-live
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| Vauxhall sold: Peugeot plays down job cuts and Brexit fears - live updates | |
| (35 minutes later) | |
| 9.49am GMT | |
| 09:49 | |
| Vauxhall workers in Merseyside are hopeful that the PSA takeover will work out, reports that BBC’s Colletta Smith: | |
| Staff cautiously optimistic about @Peugeot takeover here at Ellesmere Port. "We've survived worse" but the 2,200 jobs only safe until 2021. pic.twitter.com/WDo1ziqRS2 | |
| 9.46am GMT | |
| 09:46 | |
| Labour MP Angela Eagle, whose the Merseyside constituency of Wallasey includes many Vauxhall workers, has tweeted about the deal: | |
| The new owners of Vauxhalls Ellesmere Port plant must recognise how efficient it is and safeguard jobs there in long term #PSAsale | |
| Govt must be proactive after PSA GM sale to protect many thousands of jobs at Vauxhall and in the supply chain #PSAsale | |
| 9.38am GMT | |
| 09:38 | |
| Business Secretary Greg Clark has welcomed PSA’s pledge not to rip-up existing deals with Vauxhall’s workers. | |
| He says: | |
| “Vauxhall has a long history of success in this country and we are determined to see that continue. | |
| The Government welcomes the assurance by PSA that they will respect the commitments made by GM to Vauxhall’s employees and pensioners. | |
| The UK government will work with PSA to ensure that it keeps that promise, Clark adds. | |
| The Prime Minister and I have been in close contact with the PSA Group and General Motors and they have been clear this deal is an opportunity to grow the Vauxhall brand, building on their existing strengths and commitments. | |
| 9.24am GMT | |
| 09:24 | |
| The Peugeot-Citroen press conference is now over...here’s some instant reaction from industry experts. | |
| Deal NOT based on job cuts, @GroupePSA Tavares says:"We give people a chance, because they are good. They are talented…they are creative." | |
| GM & PSA execs' talking points on Opel deal:"win-win-win" for all 3 companies"industrial logic" made sensemake Opel a "European champion" | |
| Barra says "changing geo-political landscape" part of reason for sale, along with "changing customer preferences." | |
| 9.16am GMT | 9.16am GMT |
| 09:16 | 09:16 |
| PSA: Hard Brexit could be 'nice opportunity' | PSA: Hard Brexit could be 'nice opportunity' |
| Finally, PSA gets a question about Britain’s exit from the European Union.... | Finally, PSA gets a question about Britain’s exit from the European Union.... |
| Q: What impact will Brexit have on this deal? | Q: What impact will Brexit have on this deal? |
| Carlos Tavares says that no-one knows how Brexit is going to unfold, but the key issue is the trade relationships that Britain has with Europe. | Carlos Tavares says that no-one knows how Brexit is going to unfold, but the key issue is the trade relationships that Britain has with Europe. |
| If you think deeply about the two scenarios -either it’s hard or soft. | If you think deeply about the two scenarios -either it’s hard or soft. |
| If it’s a soft Brexit, then the focus is simply on performance - being competitive in the UK versus other countries. In that set-up, the cheaper pound could boost competitiveness. | If it’s a soft Brexit, then the focus is simply on performance - being competitive in the UK versus other countries. In that set-up, the cheaper pound could boost competitiveness. |
| If it is a hard Brexit - it will be “a very nice opportunity” to source more car parts from inside the UK, Tavares continues. | If it is a hard Brexit - it will be “a very nice opportunity” to source more car parts from inside the UK, Tavares continues. |
| That would allow Vauxhall to record more of its costs in sterling, bringing them in line with revenues. | That would allow Vauxhall to record more of its costs in sterling, bringing them in line with revenues. |
| This means that the UK supplier base needs to be developed....something that the UK government “totally understands”, Tavares says. | This means that the UK supplier base needs to be developed....something that the UK government “totally understands”, Tavares says. |
| 9.07am GMT | 9.07am GMT |
| 09:07 | 09:07 |
| PSA promises to respect workers' deals | PSA promises to respect workers' deals |
| Journalists in Paris are pressing Peugeot-Citreon about the fears of job cuts. | Journalists in Paris are pressing Peugeot-Citreon about the fears of job cuts. |
| Q: What guarantees can PSA give to workers at Opel and Vauxhall? | Q: What guarantees can PSA give to workers at Opel and Vauxhall? |
| Carlos Tavares promises that all existing agreements with unions at the two car companies will be honoured. | Carlos Tavares promises that all existing agreements with unions at the two car companies will be honoured. |
| This is not tactical, this is ethics. If there is a deal, we will respect it. | This is not tactical, this is ethics. If there is a deal, we will respect it. |
| But what about the future, when those agreements expire? | But what about the future, when those agreements expire? |
| Tavares repeats his line about giving workers a chance to improve efficiencies. | Tavares repeats his line about giving workers a chance to improve efficiencies. |
| Q: Can you achieve the planned efficiency savings without cutting staff? | Q: Can you achieve the planned efficiency savings without cutting staff? |
| Tavares says the targets aren’t based on cutting jobs. | Tavares says the targets aren’t based on cutting jobs. |
| Instead, it is based on allowing “talented and creative” staff to show their potential. | Instead, it is based on allowing “talented and creative” staff to show their potential. |
| We will offer workers a European benchmark which they can compare themselves to, Tavares adds. | We will offer workers a European benchmark which they can compare themselves to, Tavares adds. |
| 9.00am GMT | 9.00am GMT |
| 09:00 | 09:00 |
| PSA: Everyone will get a chance | PSA: Everyone will get a chance |
| ITV’s Joel Hills gets the microphone. | ITV’s Joel Hills gets the microphone. |
| Q: General Motors is taking a €4.5bn write-down on this deal - isn’t that a sign that it was keen to get out of Europe? | Q: General Motors is taking a €4.5bn write-down on this deal - isn’t that a sign that it was keen to get out of Europe? |
| GM’s Mary Barra reiterates that this deal is an “opportunity to strengthen the business” and help GM to stay competitive. | GM’s Mary Barra reiterates that this deal is an “opportunity to strengthen the business” and help GM to stay competitive. |
| Q: Can Peugeot-Citreon make this deal work without closing factories? | Q: Can Peugeot-Citreon make this deal work without closing factories? |
| PSA’s Carlos Tavares says that PSA hasn’t shut a factory since he took control of the company. | PSA’s Carlos Tavares says that PSA hasn’t shut a factory since he took control of the company. |
| Shutting down a plant is “rather simplistic”, Tavares continues. | Shutting down a plant is “rather simplistic”, Tavares continues. |
| His philosophy is that if you trust people, they will come up with ideas and solutions that you wouldn’t have thought off. | His philosophy is that if you trust people, they will come up with ideas and solutions that you wouldn’t have thought off. |
| But for that to happen, workforce and managers must believe that they are being given a chance. | But for that to happen, workforce and managers must believe that they are being given a chance. |
| Tavares concludes: | Tavares concludes: |
| Everyone will have a chance to reach the benchmark of efficiency. | Everyone will have a chance to reach the benchmark of efficiency. |
| As we progress towards that benchmark of efficiency, we do not need to shut down plants. | As we progress towards that benchmark of efficiency, we do not need to shut down plants. |
| 8.53am GMT | 8.53am GMT |
| 08:53 | 08:53 |
| Q: What does this deal mean for PSA’s existing factories in Spain? | Q: What does this deal mean for PSA’s existing factories in Spain? |
| Speaking in French, Carlos Tavares says the Spanish factories have improved their performance in recent years. | Speaking in French, Carlos Tavares says the Spanish factories have improved their performance in recent years. |
| PSA has “nothing to hide”, he insists. | PSA has “nothing to hide”, he insists. |
| Colleagues across the company have “legitimate” questions over whether their jobs are protected, he adds - and he reiterates that the answer is to be as efficient and productive as possible. | Colleagues across the company have “legitimate” questions over whether their jobs are protected, he adds - and he reiterates that the answer is to be as efficient and productive as possible. |
| 8.47am GMT | 8.47am GMT |
| 08:47 | 08:47 |
| PSA: Car workers must perform well | PSA: Car workers must perform well |
| Q: PSA will have 19 factories once this deal goes through. Will you keep them all open? | Q: PSA will have 19 factories once this deal goes through. Will you keep them all open? |
| PSA’s Carlos Taraves doesn’t make any promises -- instead, he signals that car workers hold their future in their own hands. | PSA’s Carlos Taraves doesn’t make any promises -- instead, he signals that car workers hold their future in their own hands. |
| We believe that people understand that the only thing that protects them is the ability to be at the right level of performance, Taraves says. | We believe that people understand that the only thing that protects them is the ability to be at the right level of performance, Taraves says. |
| As a company that had a “near-death” experience four year ago, we know that “the only thing that protects us is performance”, Taraves adds. | As a company that had a “near-death” experience four year ago, we know that “the only thing that protects us is performance”, Taraves adds. |
| 8.45am GMT | 8.45am GMT |
| 08:45 | 08:45 |
| Onto questions... | Onto questions... |
| Q: Did the election of Donald Trump influence GM’s decision to sell its European operations? | Q: Did the election of Donald Trump influence GM’s decision to sell its European operations? |
| Mary Barra replies that that deal is based on business logic, not political issues. | Mary Barra replies that that deal is based on business logic, not political issues. |
| 8.40am GMT | 8.40am GMT |
| 08:40 | 08:40 |
| Now the head of Opel, Karl-Thomas Neumann, speaks, and also sound optimistic abotu the sale to PSA. | Now the head of Opel, Karl-Thomas Neumann, speaks, and also sound optimistic abotu the sale to PSA. |
| He says the deal will create a “European champion”, with Opel remaining a true German brand, and Vauxhall remaining a true British brand. | He says the deal will create a “European champion”, with Opel remaining a true German brand, and Vauxhall remaining a true British brand. |
| 8.37am GMT | 8.37am GMT |
| 08:37 | 08:37 |
| Mary Barra is followed by GM’s president, Dan Ammann. | Mary Barra is followed by GM’s president, Dan Ammann. |
| He says GM found it hard to grow its market share in Europe, despite making improvements at Opel and Vauxhall. | He says GM found it hard to grow its market share in Europe, despite making improvements at Opel and Vauxhall. |
| GM President Dan Ammann says GM decided Opel needed more scale to succeed in Europe due to fragmenting market and increasing regulations. | GM President Dan Ammann says GM decided Opel needed more scale to succeed in Europe due to fragmenting market and increasing regulations. |
| GM President Dan Ammann: Market scale was becoming tough to achieve, even with improvements at Opel, Vauxhall. | GM President Dan Ammann: Market scale was becoming tough to achieve, even with improvements at Opel, Vauxhall. |
| 8.33am GMT | 8.33am GMT |
| 08:33 | 08:33 |
| Shares in PSA Group have jumped by 4% in early trading, as investors give the deal the thumbs-up. | Shares in PSA Group have jumped by 4% in early trading, as investors give the deal the thumbs-up. |
| 8.32am GMT | 8.32am GMT |
| 08:32 | 08:32 |
| More from Mary Barra: | More from Mary Barra: |
| GM CEO Mary Barra says decision to sell Opel "required thougthful and disciplined decision making about the future." | GM CEO Mary Barra says decision to sell Opel "required thougthful and disciplined decision making about the future." |
| Mary Barra says deal a win, win" for everyone. Says @GM Europe would have made money in 2016 were it not for Brexit pic.twitter.com/Sxw2vqIM8I | Mary Barra says deal a win, win" for everyone. Says @GM Europe would have made money in 2016 were it not for Brexit pic.twitter.com/Sxw2vqIM8I |
| 8.28am GMT | 8.28am GMT |
| 08:28 | 08:28 |
| GM's Barra: This deal is good for Vauxhall/Opel | GM's Barra: This deal is good for Vauxhall/Opel |
| GM’s Mary Barra is also attending the PSA press conference in Paris. She joins Carlos Tavares on the stage now.... | GM’s Mary Barra is also attending the PSA press conference in Paris. She joins Carlos Tavares on the stage now.... |
| Carlos Tavares et Mary Barra officialisent vente @Opel à @GroupePSA ce matin au siège parisien du constructeur tricolore pic.twitter.com/yVOjzsBB2C | Carlos Tavares et Mary Barra officialisent vente @Opel à @GroupePSA ce matin au siège parisien du constructeur tricolore pic.twitter.com/yVOjzsBB2C |
| Barra says the deal will put Opel and Vauxhall on a firmer footing for the future, and create a new era for the two companies. | Barra says the deal will put Opel and Vauxhall on a firmer footing for the future, and create a new era for the two companies. |
| She admits that it wasn’t an easy decision, but says GM is convinced that the sale is the right decision for customers, workers and shareholders. | She admits that it wasn’t an easy decision, but says GM is convinced that the sale is the right decision for customers, workers and shareholders. |
| Barra also argues that GM Europe would have hit its goal of breaking even in 2016 “if it wasn’t for Brexit”. | Barra also argues that GM Europe would have hit its goal of breaking even in 2016 “if it wasn’t for Brexit”. |
| #PSA and #GM announcing sale of Opel/Vauxhall to PSA. GM's Mary Barra calls it a win for all three companies. | #PSA and #GM announcing sale of Opel/Vauxhall to PSA. GM's Mary Barra calls it a win for all three companies. |
| Updated | Updated |
| at 8.29am GMT | at 8.29am GMT |
| 8.24am GMT | 8.24am GMT |
| 08:24 | 08:24 |
| PSA press conference underway | PSA press conference underway |
| PSA’s chairman, Carlos Tavares, tells journalists in Paris that today’s deal will create “create a new European automotive champion” and unleash the full potential of Vauxhall and Opel. | PSA’s chairman, Carlos Tavares, tells journalists in Paris that today’s deal will create “create a new European automotive champion” and unleash the full potential of Vauxhall and Opel. |
| Tavares insists that PSA is committed to both brands. | Tavares insists that PSA is committed to both brands. |
| In conclusion, this deal is a game-changed for PSA, Tavares adds. | In conclusion, this deal is a game-changed for PSA, Tavares adds. |
| 8.21am GMT | 8.21am GMT |
| 08:21 | 08:21 |
| You can also watch the PSA press conference on Periscope, here: | You can also watch the PSA press conference on Periscope, here: |
| 🔵 LIVE: @GroupePSA / @GM press conference #Opel #Vauxhall https://t.co/xaF5xDplrT | 🔵 LIVE: @GroupePSA / @GM press conference #Opel #Vauxhall https://t.co/xaF5xDplrT |