Peugeot has officially agreed to buy Vauxhall for £1.9bn. The news will come as welcome relief to the 4,500 employees across Vauxhall’s two UK plants at Luton and Ellesmere Port, where they build the Astra and Vivaro van.
GM has agreed to sell both the Opel and Vauxhall brand as part of the sale as well as GMa European financial operations. Peugeot believe they can make cost savings across their business with the purchase but it is yet to be seen if this will be made by reducing the workforce.
The combined group will give the company a 17% share of the European market. The problems Vauxhall/Opel have had have not been widely publicised but GMs decision to sell their biggest brands in Europe indicate the financial problems must of been deep routed. Workers at the plants will be hoping the talks continue on a positive note, but the good news is the Opel/Vauxhall brands have been saved.