The negotiations for the PSA Group will do with Opel and Vauxhall follow its course. According to an official statement of the French both “General Motors as the PSA Group regularly review additional possibilities of expansion and cooperation“ in addition, it has also clarified that “along with General Motors, is exploring many strategic initiatives with the goal of improve your profitability and operational efficiency, including a possible acquisition of Opel (Vauxhall)”.
These statements seem to want to say that the deals are moving forward, however, to avoid problems of last hour, the PSA has also clarified that “there is no certainty that it will reach a final agreement”. Well, while all this is going on, you hear rumors that talk about the closing of factories and production plants in half of Europe.
Was reported following news of the talks between General Motors and PSA that the French group it agreed not to close no the four factories that have Opel in Germany. After getting this information public the alarm went off in the Uk because Vauxhall has there two plants that they could be closed when PSA is to take control of Opel.
, In Europe General Motors has nine factories, almost all of them dedicated in exclusive to Opel. According to the Reuters news agency that the PSA Group to obtain benefits after the acquisition of the signatures German and English should cut back production and employment in the middle of the european plants. This would leave those in the Uk out of the game and therefore the loss of jobs in the automotive sector English would be very important.
in the factories In Ellesmere Port and Luton, currently employs some 4,500 employees directly. However, not only are these positions that you are in danger, as it creates many indirect jobs around the country. However, and to be reasonable there is a reason to think that finally will be closed.
The main reason is the Brexit. If the United Kingdom leaves the European Union and loses its free-trade treaties with the other countries of the eurozone the locally manufactured products will have to pay a tariff to enter our common market, and that would be that their prices will increase directly. Obviously, if the cars produced in the country rise in price the PSA Group will prefer to close plants that have to bear the cost of produce in the country taking losses. Therefore, the Uk could lose a lot more than you think, with his departure from the European Union.
While all this happens from the union’s most important workers of Opel in the Uk have already been put to work for your prime minister in order to protect their jobs. We’ll see what happens in the next few days.
Source – Automotive News