One of the biggest news stories currently in the motor trade is the potential sale of Vauxhall and the Opel brand. Current owner General Motors has been struggling with its European operations in recent years, making losses on the brands. They are said to be mulling over the thought of selling.
Building on that initial story is the news that PSA Group, the owner of Peugeot and Citroen, has announced interest in buying the brands. They are in talks with General Motors although no agreement has been reached as of yet. The potential of it happening is exciting though.
If PSA Group did buy Vauxhall and Opel they would become the second largest car manufacturers in Europe, in control of 16% of the market share. They would sit close behind Volkswagen, overtaking Renault in the process. It could prove to be an incredible move, particularly when you consider the number of facilities they would have when both operations were combined together.
General Motors has invested a great deal in Vauxhall and Opel since 2000. They planned for the brands to be their foothold in the lucrative European market but have struggled a great deal, experiencing billions of dollars in losses. A sale of the brands was expected in 2009 but GM held on to them at the time. Now it looks like the sale could finally happen.
The prospect of a sale has put question marks over motor trade jobs in the UK. GM currently employs 35,000 people across the UK under the Vauxhall brand. Of these 4,500 are at the Luton and Ellesmere Port plants. These facilities are highly efficient and could prove to be a major asset to PSA Group.
At John Gibson Associates we keep an eye on stories like this that can have an impact on motor trade jobs. As a leading recruiter for the sector we want to stay up to date so we can adjust and support businesses and candidates looking for roles too. If you have any questions for us please get in touch.