PSA/FCA merger proposal ignites Vauxhall worries

The proposed merger between PSA and FCA has ignited concerns over future prospects for the PSA-owned Vauxhall brand in the UK and its UK manufacturing facilities.

Labour union Unite said it would be seeking an urgent high level meeting with PSA, the owner of Vauxhall, following the merger news.

Responding to the news Unite national officer Des Quinn said: "Unite is seeking an urgent high level meeting with PSA over merger talks with Fiat Chrysler.

"Merger talks combined with Brexit uncertainty is deeply unsettling for Vauxhall's UK workforce which is one of the most efficient in Europe.

"The fact remains, merger or not, if PSA wants to use a great British brand like Vauxhall to sell cars and vans in the UK, then it has to make them here in the UK."

Although the merger announcement from the two groups said that no plant closures were planned on the execution of the merger, analysts say the Vauxhall car plant at Ellesmere Port in northwest England – which makes the current Astra – could be vulnerable, especially in the context of Brexit uncertainties given its heavy reliance on parts shipments from continental Europe. PSA has said that its future is contingent on future post-Brexit trade arrangements that would impact its competitive position.

More: PSA and FCA plan to merge

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