Peugeot pledges to protect thousands of UK Vauxhall jobs after General Motors deal

Vauxhall employs 4,500 people at its Ellesmere Port and Luton plants, but there are concerns that political pressure could be applied to prioritise jobs in France

PSA Peugeot Citroën’s chief executive said the firm would continue to respect existing agreements in the European countries affected by the Opel Vauxhall deal (Reuters)

The chief executive of PSA Peugeot Citroën has pledged to protect all the existing jobs affected by its planned €2bn (£1.68bn) takeover of Opel Vauxhall.

After speaking with unions in Germany on Tuesday, the chief executive of the French car giant emphasised in a statement that he would continue to respect existing agreements in the European countries affected by the deal, including labour arrangements.

“PSA's ambition is to make the cooperation and the quality of relations with employee representatives a competitive advantage and a key factor in the success of the company,” Carlos Tavares said.

Last week, PSA said that it was exploring an acquisition of General Motors' European business, which includes the Opel and Vauxhall brands, in a deal that has the potential to dramatically shake-up he region’s automotive landscape.

A combination would create a manufacturer with about 16 per cent of the European car market, which would be the region’s second-biggest auto group after Volkswagen, according to Bloomberg.

But the plans have sparked intense fears about what it might mean for jobs in the UK.

Vauxhall employs 4,500 people at its Ellesmere Port and Luton plants, but the French government has a 14 per cent stake in PSA and there are concerns that political pressure could be applied to prioritise jobs in France.

On Thursday, Business Secretary Greg Clark said that General Motors had reassured him over the future of Vauxhall's UK operations during a meeting that he had had with GM’s president, Dan Ammann.

Mr Clark told reporters after the meeting that Mr Ammann said GM would not “rationalise” Vauxhall's UK production operations.