The merger of PSA and Fiat Chrysler makes Vauxhall fear for the future The proposed merger awakens fears of the British PSA offshoot Vauxhall fears. "The merger talks and the uncertainty associated with Brexit are troubling Vauxhall's workforce, which is among the most powerful in Europe," said the unionist Des Quinn to the BBC.
With a combative undertone, Des Quinn clarifies his point: "Regardless of the merger, PSA must be aware that if you want to continue selling Vauxhall models in the United Kingdom, these models also need to be produced in the UK."
Vauxhall employs around 3000 people in the UK who are now worried about their jobs. As a result, unions are now calling for PSA talks on the future of the brand and its location in Ellesmere Port. Professor David Bailey of the Birmingham Business also stated on the BBC that the targeted cost reductions "can not be achieved without the closure of factories and substantial layoffs." In fact, the Ellesmere Port factory is obviously in a critical situation because the governments in Rome and Paris (the French state is indirectly involved in PPE) will protect factories in Italy and France. Bailey: "I'm worried that Ellesmere Port, which is operating very efficiently, could eventually be sacrificed to the planned savings and uncertainty caused by Brexit."
In Ellesmere Port, around 1000 employees are assembling Opel models offered in the UK with the Vauxhall trademark. Already in the summer, PSA boss Carlos Tavares had already indirectly questioned the future of the production facility. "We would like to continue to produce the Astra in Wales, but if we can not make the production profitable, then we have to protect the rest of the company."
French Finance Minister Bruno Le Maire has already announced that his government will protect French interests.
At the same time, he welcomed the possible merger, as the two companies would reach the critical size to invest in cleaner technologies. However, "the government will watch closely to preserve the Group's industrial footprint in France."
If the merger actually goes on stage, the new group should set up its headquarters in the Netherlands. The eleven-member board, according to the plans, will consist of six PSA representatives and five Fiat representatives. PSA boss Carlos Tavares and John Elkann of Fiat family Agnelli will join the panel.
Through the merger, PSA could finally realize the plan, which has been postponed for many years, to roll on the American one that has been abandoned in the 1970 years. So far, the Group is represented there only with mobility services. Fiat Chrysler, in turn, will benefit from the French technology lead in electric vehicles. In recent years, the US-Italian company has neglected this area and is now facing a lot of catching up to do.
In the background, in turn, is the Chinese Dongfeng Group, which saved PSA from its impending bankruptcy a few years ago together with the French state. Through the merger, the Chinese are now unexpectedly able to access the US market via an established dealer network.
An end to the Vauxhall production would be another blow to the British auto industry and its suppliers on the island. Honda has already announced the end of its British manufacturing plant, and allegedly considering Nissan now leave the island.