TRADE unions were last night preparing for a fresh round of negotiations to secure the future of thousands of Vauxhall car workers' jobs following a dramatic decision by the firm's owners not to sell its European arm.
The General Motors board decided after a six-hour meeting in Detroit to scrap plans to sell its Opel and Vauxhall brands to Canadian car parts firm Magna – a deal that had threatened thousands of jobs across Europe.
GM president and chief executiv
e Fritz Henderson said the decision to keep Vauxhall followed a more benign business environment in Europe and GM's improved financial health.
The decision was greeted with cautious optimism by some of the 5,500 workers employed by Vauxhall in the UK, mainly at Ellesmere Port and Luton, but sparked anger in Germany.
Analysts predicted two German plants may now close, with the loss of thousands of jobs, as a result of GM's decision.
Workers across Europe were concerned that Magna's takeover would give an unfair advantage to Opel's vast workforce in Germany, as their government was willing to give loans worth £4 billion.
German workers were today beginning walk-outs in protest at GM's decision, while the German government denounced the car giant's behaviour as "totally unacceptable".
Trade unions in Germany tore up cost-cutting agreements made with Opel's management, which had been conditional on the purchase of the firm by Magna and its Russian backer Sberbank. Russia's government also branded GM's turnaround as "astonishing".
Rainer Bruederle, Germany's economy minister, vowed to recover a 1.5bn (£1.3bn) bridging loan to Opel by the German government. He said: "We will get the taxpayers' money back."
Back in the UK, Business Secretary Lord Mandelson said the decision was a "major U-turn", adding: "I am keen for very early discussions with GM over their plans for the business and how they will affect British plants and workers. I have always said that if the right long-term sustainable solution is identified, then the UK government would be willing to support this."
Tony Woodley, joint general secretary of the Unite trade union – and a former worker at Vauxhall's Ellesmere Port plant – said: "This is an incredible turnaround from General Motors. I am absolutely delighted.
"It is fantastic news for the UK and right that GM does not break up its family and instead retains ownership of Vauxhall.
"The problems for GM were rooted in the US, not in the UK where our plants restructured themselves years ago, becoming the most efficient in Europe.
"In terms of securing the best future for Britain's plants, we want Vauxhall to be part of a giant global company, one which is now successfully restructuring thanks to president (Barack] Obama's intervention.
"Far better to remain within the experienced GM group than be spun off to Magna, which simply does not have the expertise to run a global car company.
"So negotiations start again. Of course, restructuring will still be needed, but this is a business which supports well over 20,000 jobs and 400 component companies in this country."
"Our expectation then, is that GM will be sticking to its original plan for its EU sites, including the UK, and that this has not altered," Woodley said.
About 2,200 workers are employed at Ellesmere Port, producing the new Astra.
Unions are also expected to seek guarantees about the future of the van plant at Luton.
