German Chancellor Angela Merkel has today announced that Magna International will purchase a majority stake in the European unit of General Motors (GM), which includes Vauxhall and Opel.
By Ellie Duncan
The decision comes after months of uncertainty about the future of jobs in the car manufacturing industry.
Chancellor Merkel welcomed the announcement, which will see all four German plants remain open.
A spokesman for Magna said the Ellesmere Port plant, where Vauxhall manufactures the Astra, will also stay open, although British unions have continued to express concern about the future of jobs in the industry.
“The uncertainty surrounding the ownership of Vauxhall is now over, but the uncertainty surrounding the long-term future of Britain’s plants will continue,” said Tony Woodley, General Secretary of the Unite union.
JOB SECURITY
However, in the short-term, Magna’s 55 percent interest in the European division will secure 5,500 jobs at Vauxhall factories in the UK.
The decision was finalised after a two-day meeting between GM executives at its headquarters in Michigan.
The American group will retain a 35 percent stake, while employees will hold a 10 percent stake.