Thousands of jobs in the UK are under threat over the recent collapse of American car manufacturing giant General Motors (GM). The company were forced to finally file for bankruptcy protection in the US, causing uncertainty for all its workers about their future with the company. The European branch of GM, which includes Vauxhall in the UK as well as the German brand Opel, has already been sold off to Magna International, a Canadian car parts company.  But although this means that both the British and German brands will continue production, a fall in demand for car sales and car leasing deals could mean that Magna will be making significant job cuts.

The worry for Vauxhall is that Magna is a relatively unknown company in the UK, with ties to the Russian vans company run by oligarch Oleg Deripaska and Sberbank, a Russian bank. This has led to speculation that production at Vauxhall’s Luton plant, where they make Vivara vans, could be moved to Russia, leaving the Luton’s 1,400 workers without jobs. The German government also had a hand in making sure the takeover deal went smoothly, causing worries that the Opel factories and workers may be protected as a priority and that if cutbacks in production and staff were necessary, it would have to happen in the UK. However this is all speculation at this point as Magna have made no promises yet and have made it clear that they will do everything in their power to protect as many jobs as possible in all areas.

For Vauxhall’s 5,500 UK workers, all they can do is to remain hopeful that the company will recover quickly after the takeover by Magna, who obtained the company over other potential buyers including Italian car manufacturer Fiat. Car leasing and car sales will need to improve soon for the decision to keep factories open to be viable. In the meantime for buyers interested in purchasing a car from Vauxhall, car leasing could be a better option as it enables you to choose from a wider range of vehicles, and is less likely to leave you in a difficult position if the company suffers any further disaster in the future.

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