Vauxhall In Crisis
Emergency talks held in Germany on the 27th May, intended to resolve the General Motors Europe financial problems, collapsed overnight without agreement leaving thousands of Vauxhall workers in Britain concerned for the safety of their jobs.
Flint, UK (PRWEB) May 31, 2009 -- Emergency talks held in Germany on the 27th May, intended to resolve the General Motors Europe financial problems, collapsed overnight without agreement leaving thousands of Vauxhall workers in Britain concerned for the safety of their jobs.
The parent company US car giant General Motors, which itself is already sliding into imminent bankruptcy, was endeavouring to sell a majority shareholding in its European operation. But the German government was unable to reach a mutually satisfactory solution with any of the three bidders, Italy's Fiat, Canadian car-parts manufacturer Magna and financial investor RHJ International.
A spokesman for Staveley Head, one of the UK's leading van insurance providers, said "Vauxhall production includes a substantial number of vans in addition to their car output and this development following so closely on the heels of the loss of production at LDV must be of great concern. Trade unions already fear that the Vauxhall workforce could be sacrificed if the British government fail to take an active part in the negotiations. If agreement can be reached with any potential buyer job cuts and plant closures will certainly be implemented in order to substantially reduce running costs. It is believed the Magna and RHJ proposals include axing 10,000 jobs."
General Motors, the American parent company, has been given until 1st June to formulate a feasible survival plan to regularise its operations and address its crippling debts, but GM bond holders have so far failed to accept the company's offer to exchange $27bn of bond debt for a 10% shareholding in a restructured GM. If they continue to do so GM will be forced to adopt Chapter 11, the American version of bankruptcy proceedings, on the 1st June which will make it the biggest ever American industrial company to go bust.
Staveley Head is one of the country's leading van insurance brokers and will give you all the advice and assistance you need regarding this matter, including a very competitive van insurance quote, if you log onto their website at www.staveleyhead.co.uk.
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