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| Vauxhall job fears rise as Peugeot boss mentions 'speedy' savings | Vauxhall job fears rise as Peugeot boss mentions 'speedy' savings |
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| The boss of PSA Group said the French carmaker’s proposed acquisition of General Motors’ lossmaking European business could bring “speedy” savings, sparking fresh fears over job cuts at Vauxhall in the UK. | The boss of PSA Group said the French carmaker’s proposed acquisition of General Motors’ lossmaking European business could bring “speedy” savings, sparking fresh fears over job cuts at Vauxhall in the UK. |
| Carlos Tavares, chief executive of PSA which owns Peugeot, Citroën and DS, said adding GM’s German Opel and the British Vauxhall brands would attract new customers, and create cost savings from shared technical underpinnings. | Carlos Tavares, chief executive of PSA which owns Peugeot, Citroën and DS, said adding GM’s German Opel and the British Vauxhall brands would attract new customers, and create cost savings from shared technical underpinnings. |
| Tavares was speaking on Thursday, after Theresa May had stressed the UK government’s commitment to the British car industry in a telephone conversation with the PSA executive on Wednesday evening. | Tavares was speaking on Thursday, after Theresa May had stressed the UK government’s commitment to the British car industry in a telephone conversation with the PSA executive on Wednesday evening. |
| He said he wanted to create a new “European car champion” and pledged to work with national governments and unions worried about job losses. | He said he wanted to create a new “European car champion” and pledged to work with national governments and unions worried about job losses. |
| However, he also said that if the deal goes ahead, savings would be underpinned by rapid convergence of underlying vehicle architectures. “When you look at the product plan you see that you can in a quite speedy way implement quite significant synergies,” he said. | However, he also said that if the deal goes ahead, savings would be underpinned by rapid convergence of underlying vehicle architectures. “When you look at the product plan you see that you can in a quite speedy way implement quite significant synergies,” he said. |
| PSA expects the takeover to lead to savings of €1.5bn to €2bn, according to Reuters, citing unnamed sources. | PSA expects the takeover to lead to savings of €1.5bn to €2bn, according to Reuters, citing unnamed sources. |
| Tavares told analysts and reporters: “There is significant complementarity in terms of customer consideration between the German Opel brand and our three French brands.” | Tavares told analysts and reporters: “There is significant complementarity in terms of customer consideration between the German Opel brand and our three French brands.” |
| Tavares, a former Nissan executive who built a reputation as a cost cutter at PSA, added: “This company needs help. What we see today with the situation of Opel ... has a lot of similarities with what we were facing four years ago.” Opel last reported a profit in 1999. | Tavares, a former Nissan executive who built a reputation as a cost cutter at PSA, added: “This company needs help. What we see today with the situation of Opel ... has a lot of similarities with what we were facing four years ago.” Opel last reported a profit in 1999. |
| A 10 Downing Street spokesman, commenting on May’s conversation with Tavares, said: “The prime minister and Mr Tavares discussed the importance the UK attaches to Vauxhall’s plants at Ellesmere Port and Luton and their shared desire to protect and promote the jobs it supports and what Mr Tavares referred to as the ‘iconic’ Vauxhall brand within the wider group. | A 10 Downing Street spokesman, commenting on May’s conversation with Tavares, said: “The prime minister and Mr Tavares discussed the importance the UK attaches to Vauxhall’s plants at Ellesmere Port and Luton and their shared desire to protect and promote the jobs it supports and what Mr Tavares referred to as the ‘iconic’ Vauxhall brand within the wider group. |
| “The prime minister reiterated the government’s commitment through our modern industrial strategy to creating and supporting the right conditions for the UK automotive industry to go from strength to strength, now and into the future. A particular shared goal was strengthening the UK’s automotive supply chain.” | “The prime minister reiterated the government’s commitment through our modern industrial strategy to creating and supporting the right conditions for the UK automotive industry to go from strength to strength, now and into the future. A particular shared goal was strengthening the UK’s automotive supply chain.” |
| PSA was on the verge of bankruptcy in 2014 but was saved by a state-backed bailout and Chinese investment, and has bounced back under Tavares. The company announced on Thursday it would resume dividend payments for the first time since 2011, after annual profits nearly doubled to €1.7bn from €899m in 2015, helped by cost cuts. Revenues were stable. | PSA was on the verge of bankruptcy in 2014 but was saved by a state-backed bailout and Chinese investment, and has bounced back under Tavares. The company announced on Thursday it would resume dividend payments for the first time since 2011, after annual profits nearly doubled to €1.7bn from €899m in 2015, helped by cost cuts. Revenues were stable. |
| The economy ministers of Germany and France are expected to discuss the deal at a meeting in Paris on Thursday. PSA would become Europe’s second-biggest carmaker behind Volkswagen, with sales of 5m cars. | The economy ministers of Germany and France are expected to discuss the deal at a meeting in Paris on Thursday. PSA would become Europe’s second-biggest carmaker behind Volkswagen, with sales of 5m cars. |
| Tavares said: “We believe there is an opportunity to create a European car champion, resulting from the combination of a French company and German company and without forgetting our UK friends.” | Tavares said: “We believe there is an opportunity to create a European car champion, resulting from the combination of a French company and German company and without forgetting our UK friends.” |
| He said PSA would respect existing labour agreements, but did not rule out job cuts. Tavares has spoken with German chancellor Angela Merkel and met with Opel employee representatives since the takeover discussions were announced last week. “The best way ... is to have unions and governments on your side,” he said. | He said PSA would respect existing labour agreements, but did not rule out job cuts. Tavares has spoken with German chancellor Angela Merkel and met with Opel employee representatives since the takeover discussions were announced last week. “The best way ... is to have unions and governments on your side,” he said. |
| Len McCluskey, general secretary of Unite, Britain’s biggest union, is due to meet Tavares in London on Friday. He has urged the UK government to protect Vauxhall from factory closures and job losses. | Len McCluskey, general secretary of Unite, Britain’s biggest union, is due to meet Tavares in London on Friday. He has urged the UK government to protect Vauxhall from factory closures and job losses. |
| Vauxhall’s Ellesmere Port and Luton plants employ about 4,500 people, with thousands more jobs depending on the carmaker in the supply chain and retail. Vauxhall accounts for 14% of the UK car market. | Vauxhall’s Ellesmere Port and Luton plants employ about 4,500 people, with thousands more jobs depending on the carmaker in the supply chain and retail. Vauxhall accounts for 14% of the UK car market. |
| McCluskey said: “A very concerning picture is emerging here ... Vauxhall workers and their union Unite have yet to be advised of General Motors’ plans but I say again to both auto makers and the UK government we will not accept any threats to UK plants and jobs. | McCluskey said: “A very concerning picture is emerging here ... Vauxhall workers and their union Unite have yet to be advised of General Motors’ plans but I say again to both auto makers and the UK government we will not accept any threats to UK plants and jobs. |
| “I will be reinforcing this when I meet with Carlos Tavares, the Peugeot head, this Friday. I will saying again to him that GM has a unique place in the UK’s market place, and that the company’s share of that market has never been higher so do not mistreat loyal UK workers and customers. | “I will be reinforcing this when I meet with Carlos Tavares, the Peugeot head, this Friday. I will saying again to him that GM has a unique place in the UK’s market place, and that the company’s share of that market has never been higher so do not mistreat loyal UK workers and customers. |
| “It is disappointing that the prime minister has not been able to find the time to meet directly with Mr Tavares as this would have been the opportunity for her to state that she will give UK plants the same, if not more, backing for the UK plants as the German and French leaders have given their workforces.” |