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VAUXHALL JOBS FEARS

Peugeot-Citroen’s French owners agree to buy Vauxhall raising fears 4,500 UK jobs could be lost

The £1.9 billion deal would make PSA Group Europe's second largest car maker behind Volkswagen

THE French company that owns Peugeot and Citroen has struck a billion-pound deal to buy British car maker Vauxhall - sparking fears thousands of UK jobs could be lost.

PSA Group and GM announced the move in Paris to buy General Motors' European unit.

 The owners Peugeot have struck a deal to buy Vauxhall
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The owners Peugeot have struck a deal to buy VauxhallCredit: EPA

It has raised fears of job losses at Vauxhall's UK factories in Luton and Ellesmere Port, which employ 4,500 workers.

Thousands of other staff work in Vauxhall's showrooms and supply chain.

Unite said staff had suffered a "nerve-wracking" few weeks.

General Secretary Len McCluskey said: "We will also be urging the Government to stay at the table, just as the French and German governments do, to provide full support for our auto workers through this deeply unsettling time."

PSA would become Europe's second largest car-maker behind Volkswagen when the £1.9billion deal goes ahead.

Carlos Tavares, chairman of PSA's managing board, said: "We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround.

 The deal has sparked fears workers at the Luton factory could lose their jobs
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The deal has sparked fears workers at the Luton factory could lose their jobsCredit: AP:Associated Press

"We respect all that Opel/Vauxhall's talented people have achieved as well as the company's fine brands and strong heritage.

"We are confident that the Opel/Vauxhall turnaround will significantly accelerate with our support, while respecting the commitments made by GM to the Opel/Vauxhall employees."

A Downing Street spokesman said Prime Minister Theresa May and the Business Secretary spoke to GM Europe boss Mary Barra on Sunday.

"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.

"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," he said.


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