PSA Group, General Motors merger will not lead to job losses
The PSA Group has paid the equivalent of R30 billion for General Motors’ European arm - which produces Opel and Vauxhall.
LONDON - With Brexit looming over Europe, assurances have been made that a massive new merger in the car manufacturing industry will not lead to factories being shut or jobs being lost.
The PSA Group, the French company behind Peugeot, has paid the equivalent of R30 billion for General Motors’ European arm - which produces Opel and Vauxhall.
Britain’s departure from the European Union has raised fears of the economic impact on jobs and the country’s ability to trade.
Through the acquisition, the PSA Group becomes the second-largest carmaker in Europe.
The company says shutting down factories is the simplistic answer in trying to turn losses into profits.
Instead, it says the answer lies in new ideas, but sceptics are calling on government to play its part to help protect thousands of UK-based jobs.
The deal still requires approval, while the outcome of Brexit negotiations will be an important factor.
This week’s budget speech is expected to focus on guarding the country against Brexit by building up a financial safety net.