Theresa May holds talks with Peugeot boss looking to buy Vauxhall

Vauxhall has 4,500 workers at its UK plants
Vauxhall has 4,500 workers at its UK plants Credit: Simon Dawson/Bloomberg 

Theresa May has spoken with the motor industry boss expected to acquire Vauxhall about the Government’s continued commitment to supporting the car industry in the UK.

The Prime Minister spoke by telephone with Carlos Tavares, the chairman of France’s PSA Peugeot-Citroen, which is in negotiations with US giant General Motors to buy its loss-making European operation, which includes Vauxhall and Opel. 

“The Prime Minister and Mr Tavares discussed the importance the UK attaches to Vauxhall’s plants at Ellesmere Port and Luton and their shared desire to protect and promote the jobs it supports and what Mr Tavares referred to as the 'iconic’ Vauxhall brand within the wider group,” a No 10 spokesman said.

“The Prime Minister reiterated the Government’s commitment through our modern industrial strategy to creating and supporting the right conditions for the UK automotive industry to go from strength to strength, now and into the future.

 “A particular shared goal was strengthening the UK’s automotive ­supply chain. The Prime Minister and Mr Tavares agreed that they and the Business Secretary would remain in close contact as discussions progress to ensure UK interests continue to be at the forefront of any future deal.”

The Prime Minister spoke of "shared desire to protect and promote jobs" with PSA Peugeot-Citroen
The Prime Minister spoke of "shared desire to protect and promote jobs" with PSA Peugeot-Citroen Credit: Simon Dawson/Bloomberg

The two UK plants employ around 4,500 staff, making Astra cars and Vivaro vans. However analysts have raised fears that a deal could see the French car giant move production of the Astra from Ellesmere Port to France.

Other General Motors plants in Germany and Spain are also seen as vulnerable.

"It's about hard restructuring in Germany, the UK and in Spain, resulting in 5,000 manufacturing job cuts," said analysts at Evercore ISI.

According to reports by Press Association the US and French group are keen to seal a deal in the next fortnight before the Geneva Motor Show in March.

The Business Secretary Greg Clark has also held talks with PSA and General Motors and travelled to Paris last week to talk to the French government.

Earlier this week, Mr Tavares said PSA would safeguard existing job guarantees. The Government is also expected to offer incentives to the French company to help protect UK jobs in line with the assurances it offered to rival Japanese carmaker Nissan last autumn if a deal happens. 

License this content