Call for UK protection as Vauxhall sold to French carmaker

General Motors has agreed to sell its Opel/Vauxhall subsidiary to French carmaker PSA Group for around £1.9bn.

PSA, which already produces Peugeot and Citroen brands, gave some assurances about the future of Vauxhall, which has car plants at Ellesmere Port and Luton.

Carlos Tavares, chairman of the managing board of PSA, said: ‘We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround.

A Vauxhall car in the UK

‘We are confident that the Opel/Vauxhall turnaround will significantly accelerate with our support, while respecting the commitments made by GM to the Opel/Vauxhall employees.’

Len McCluskey, general secretary of union Unite, said he was determined to convince Mr Tavares to continue to build in Britain but added that with uncertainty caused by Brexit harming the UK auto sector, ‘there is also a role for the Government to play’.

He said: ‘Wednesday’s Budget is a perfect opportunity for the Government to make is clear that it will preserve our trading arrangements and that it will invest for our auto sector’s future now, beginning with assistance for the reshoring of components.’