Two bidders for the European operations of GM have said they will cut thousands of jobs if they seal a deal with the American company.
And with the talks brokered by the German government – where Opel is based – there are worries Vauxhall could bear the brunt of cuts.
Vauxhall employs 5,500 workers and has plants in Luton and Ellesmere Port.
Business secretary Lord Mandelson says Vauxhall production in the UK is a ‘main revenue and profit stream’ for GM.
‘There is no question of GM wanting to dispense with it,’ he told the BBC. ‘We are making sure the future of Vauxhall is secured.’
But he did admit that the there would be ‘reorganisation and restructuring’, which will result in job losses.
It is understood the UK government is willing to offer funding to the new management – but that’s wholly dependent on plans for the UK operation.
So who’s in the running for GM in Europe? Well, at present the following is known:
Fiat: Plans to cut 10,000 jobs in Europe and close German Opel factory
Magna: Canadian-Austrian car parts group would cut jobs in Germany. Talk of shared ownership with Opel employees and GM.
There were initially four bidders but these two are now believed to be the front runners.
As soon as we hear more we’ll update you.