Vauxhall Dealers Wait On Gm Motors Over Latest Redundancy Decision
Vauxhall dealers will be pleased to hear that American motoring giant GM motors has
decided against selling their stock to the Canadian car parts firm Magna. When the credit crunch initially hit it seemed likely that several of the jobs at the various manufacturing plants in the UK would be under threat.
Thankfully for the members of staff at the plants around the country, the Canadian giant Magna approached GM motors about making an investment in the company, as they looked to take a substantial share of the company. Magna's initial plan meant that none of the existing workforce in the UK would be made redundant, which seemed to please a majority of the members of staff. It was also good news for Vauxhall dealers who had been fending off a series of questions from worried members of staff and consumers.
The discussions between the two parties raged on in the boardroom as they attempted to come to an agreement about the settlement. However, while this was happening the global market started to see significant signs of recovery and the need for GM Motors to sell off part of their stock became less important.
Magna continued in their efforts to broker a deal between the two car giants, but within the last week GM motors has scrapped the plan that had initially been setup and made the announcement that they were set to continue with the production of Vauxhall cars on their own.
How this news was received in the Vauxhall dealers around the country remains to be seen. The firms were pleased when the announcement of the Magna deal was announced as the entire workforce had guaranteed jobs for the foreseeable future.
Now the deal has been extinguished Vauxhall dealers might not be so optimistic about the future with the company already talking about a stringent restructuring plan, which could involve several of the employees being removed from their jobs.
The workforce have been forced to sit around through the turbulent and trying times over the last year and wait for a definitive commitment to their jobs from the American car giant and it looks as though they will have to wait a touch longer before they get a definitive answer on their futures.
Whether this new announcement has an effect on the dealerships is yet unknown, but I'm sure that all the Vauxhall dealers will be following the news with interest over the coming weeks and months to see what transpires.