Wednesday 18 December 2019 4:36 pm

Vauxhall union seeks assurances over $50bn PSA-Fiat mega-merger

The UK’s largest union is seeking an urgent meeting on the future of Vauxhall after the car company’s owner PSA agreed to merge with Fiat Chrysler.

The deal, which is worth $50bn, will see the as yet-unbranded new firm become the world’s fourth largest car manufacturer.

Unite national officer Des Quinn said: “Unite is seeking guarantees at the highest level as to the long-term future of all PSA’s UK sites and its highly skilled world class workforce.

“It is essential that such a meeting happens as soon as possible in order to alleviate the natural and legitimate concerns of the workforce at this time of change and uncertainty.

“Unite will also be seeking guarantees about new investment to ensure that the company’s UK factories are able to continue to build high quality cars and vans to meet the challenges of the transition to electric vehicles.

The companies have previously assured workers the combined group would have no need to close factories to hit savings targets.

That should reassure PSA’s British workforce of 3,000 people, who make Vauxhall cars at the company’s Ellesmere Port site on Merseyside and vans at its factory in Luton.

The tie-up, set to close in 12 to 15 months, comes as car makers struggle through a worldwide downturn in demand due to a variety of factors.

The combined business will chase annual $4bn cost savings through shares purchasing agreements and by combining technologies.

The pair will have a board comprised of 11 members, with five from each company.

PSA chief Carlos Tavares, who will be the CEO of the combined company for an initial five -year term, will hold the remaining seat.

Tavares said: “Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe and sustainable mobility and to provide our customers with world-class products, technology and services,”