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Concern for UK jobs at Vauxhall
Thousands of UK workers are at risk of losing their jobs in the wake of the collapse of American car manufacturing giant General Motors (GM). The company filed for bankruptcy in the US yesterday, leaving the future of all its workers uncertain. The European branch of GM, which includes Vauxhall in the UK as well as the German brand Opel, has been bought out by Canadian car parts company Magna International. But although this means that both the British and German brands will continue production, a fall in demand for car sales and car leasing deals could mean that Magna will be making significant job cuts.
The worry for Vauxhall is that Magna is a relatively unknown company in the UK, with ties to Russian oligarch Oleg Deripaska's vans company and the Russian bank Sberbank. The Russian involvement has raised worries about production at Vauxhall's Luton plant, where they make Vivara vans, could be moved to Russia, leaving the Luton’s 1,400 workers without jobs. The German government also had a part to play in ensuring that the takeover was a success, leading to fears that all the company’s German plants could be protected and that if cutbacks in production and staff were necessary, it would have to happen in the UK. Of course nothing has been officially confirmed to date as Magna have made no promises yet and have made it clear that they will do everything in their power to protect as many jobs as possible in all areas.
For Vauxhall’s 5,500 UK workers, all they can do is to remain hopeful that the company will recover quickly after the takeover by Magna, who obtained the company over other potential buyers including Italian car manufacturer Fiat. Car leasing and car sales will need to improve soon for the decision to keep factories open to be viable. In the meantime for buyers interested in purchasing a car from Vauxhall, car leasing could be a better option as it enables you to choose from a wider range of vehicles, and is less likely to leave you in a difficult position if the company suffers any further disaster in the future.
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