Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Britain to press bidders over Vauxhall's future

Published 07/22/2009, 11:01 AM
Updated 07/22/2009, 11:08 AM

LONDON, July 22 (Reuters) - British authorities will hold talks with firm bidders for carmaker Vauxhall in an effort to protect UK production and its 5,500-strong workforce.

Business Secretary Peter Mandelson, speaking ahead of a tour of the company's 2,200-employee plant in Ellesmere Port in northwest England, also said he was in "constant contact" with the U.S. and German governments about the firm's future.

Vauxhall and German sister company Opel have been put up for sale by the European arm of General Motors (GM), which re-emerged from bankruptcy in a restructured form earlier this month.

GM Europe will hold talks with various European governments, including the UK, later this week.

"We are determined to continue our detailed discussions with RHJ, Magna and other interested parties to secure a long-term commercial future for Vauxhall," Mandelson said.

"(We) are in constant contact with the US and German governments and GM and others to ensure Britain's interests are fully represented," he added.

Canada's Magna remains Germany's preferred candidate of the three bidders for Opel, a German government spokesman said on Wednesday ahead of a meeting with GM representatives.

Mandelson was meeting Vauxhall management and unions at Ellesmere Port on Wednesday. The plant hopes to begin assembling the new Vauxhall Astra in September.

The Minister said at Vauxhall's other UK plant at Luton, north of London, earlier this month that the government was prepared to part-underwrite a takeover of GM Europe -- a move welcomed by trade union Unite.

(Reporting by John Bowker; editing by John Stonestreet)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.