According to reports, both the UK and German administrations are looking to protect jobs in the potential merger deal of the Vauxhall and PSA group.
Reports said that authorities were apprehensive following PSA Group’s announcement that it was in talks to take over General Motors’ loss-making European business Opel. Opel has thousands of workers at its plants in Germany and UK arm Vauxhall.
UK’s business Secretary Greg Clark said in a statement that he would make a “strong case” for the companies to keep manufacturing in the UK. He reportedly met with union officials to discuss the future of Vauxhall, which employs 4,500 staff at plants at Ellesmere Port and Luton.
In the meantime, Germany’s officials has also showed their concerns and frustrations with the possible deal.
German economy Minister Brigitte Zypries said it was “unacceptable” that Opel and French firm PSA had not referred ministers or unions before going ahead with the discussions.
Spokesperson of German Chancellor Angela Merkel said that the officials will discuss the deal with the French government in an effort to limit the potential impact on German workers, Chancellor Angela Merkel’s spokesman said.
With an aim to hold the outrage, General Motors (GM) chief executive Mary Barra reportedly travelled to Germany to answer questions about the deal on Wednesday.
Maker of Peugeot cars, PSA group also revealed that its chief executive Carlos Tavares is planning to meet senior German officials, possibly including Mrs Merkel, in the coming days.
Opel employs about half its workers, about 19,000 people, in Germany.
PSA group’s, which is partially owned by the French state, proclamation comes a week after US car-maker giant GM posted a loss of $257 million from its European operations last year. Which also marks the 16th consecutive loss-making year for the giant in Europe, bringing its cumulated losses on the area since 2000 to above $15 billion.