Derek Simpson voices concern over Vauxhall deal - and where was Mandy?

Unite has expressed it fear for UK jobs after a deal was announced to save the European arm of General Motors.

Germany has agreed a deal with Canadian car parts maker Magna International to take over most of GM Europe, which owns Vauxhall and Germany-based Opel.

The UK government says it is optimistic Vauxhall, which employs 5,500 people in Luton and Ellesmere Port, can be saved.

But Derek Simpson, said he fears German plants will be saved rather than UK factories and is questioning why Lord Mandelson wasn't in Germany fighting to protect jobs in the UK.

Under the deal struck late on Friday night, the German government will provide an emergency loan of £1.3bn while the European arm of GM is sold to Magna, with investment backing from Russia.

Derek Simpson told the BBC: "I'm not entirely certain where it leaves Vauxhall. If there is overcapacity in Europe and Magna and the people associated appear to be making very strong commitments not just to Opel but particularly to the German plants, doubtlessly based on the support of the German government, it makes you wonder where the cut in capacity will come.

"That's the great worry - that the German plants will be saved and that just puts more pressure on everywhere else, obviously including the UK."

While there was no reason why Vauxhall could not be saved, he said it was "easier, cheaper and quicker to dismiss UK workers than elsewhere in Western developed Europe".

Derek said the British government could have been more involved in the negotiations, which took place in Berlin and were attended by German chancellor Angela Merkel and other ministers as well as car firm representatives but not Lord Mandelson.

He added: "I want to know, clearly quite frankly what the UK government's doing to try and ensure that the Vauxhall plants here are indeed as safe."

GM in the US is expected to declare Chapter 11 bankruptcy on Monday.

Speaking after the deal was announced, UK Business Secretary Lord Mandelson said Magna had made it clear it was committed to continued production in the UK.

He added that he would be seeking a meeting to "reinforce that commitment".
But he added: "Of course it will involve change, there is excess capacity."