Opel/Vauxhall: Sale to PSA Group

Debate between Justin Madders and Greg Clark

Monday 6th March 2017 Commons Chamber

[Greg Clark]

I will, indeed, and I am grateful to my hon. Friend for her question. I have mentioned two areas in particular. On research and development, bringing together our universities and research institutions with the companies in the sector through the Automotive Council is very important. On the training of people who are going to work in the sector, I have had the pleasure of visiting the campus of Warwick University, where the automotive innovation centre is being built with a school for apprentices that will train 1,000 apprentices a year to work in this sector, and those are important developments. I have mentioned the supply chain, and through the industrial strategy we will make Britain even more attractive, particularly for smaller and medium-sized enterprises to service the major companies.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I thank the Secretary of State for keeping colleagues informed as matters have developed. It is clearly good news that we have a guarantee that production will continue until the end of the current Astra run at Ellesmere Port, but there is a deep concern in the community about what will happen after that. The noises that we have heard from PSA so far have been about plants being judged on their efficiency. I am very confident that, with the track record we have at Ellesmere Port of unions and management working together, we can put a very good case forward. However, there are things beyond their control, which is where the Government can step in, whether on business rates, procurement or the supply chain. I would like assurances from the Secretary of State that he will do everything in his power to ensure that we have a competitive environment for the Ellesmere Port and Luton plants.

[Greg Clark]

I will indeed. I will work with any hon. Member who has an interest in securing the future of this company and others in our economy. The hon. Gentleman is absolutely right. The fact that plants will be judged, as they tend to be in the automotive sector for new models, on the basis of competitive efficiency is a strength for us in this country, because our automotive plants are the strongest in the world. I would rather we competed on efficiency. I will work, through the Automotive Council and our industrial strategy, to ensure that all the competitive elements that have been so successful to date will continue and increase.

Vauxhall/Opel: Proposed Takeover

Debate between Justin Madders and Greg Clark

Monday 20th February 2017 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on the proposed takeover of Vauxhall and Opel by PSA.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

Vauxhall is one of our oldest and most valued motor manufacturers. It has been making cars in Britain for 113 years and has been owned for the last 92 years by an overseas investor, General Motors. There are over 40,000 people employed directly by GM or in Vauxhall’s retail or supply chain in this country. Last Tuesday, news emerged that GM was in discussions with French company PSA about the future of GM’s European operations.

I spoke to the president of GM by telephone that afternoon and communicated the importance we attach to Vauxhall’s presence in the UK and to its workforce. I am grateful to Mr Ammann for travelling to meet me in my office last Thursday morning. In our meeting, he told me that no agreement with PSA had been reached and discussions were ongoing, that he shared my assessment of the success of the Vauxhall plants in Britain and the Vauxhall brand, and that GM’s intention was that any deal should be about building on the success of these operations, rather than seeking to rationalise them.

Following my meeting with GM, I travelled to Paris to meet my counterpart in the French Government, the Industry Minister, and following those discussions I met PSA board members for two hours later on Thursday night. I emphasised once again the importance I attach to the continuing success of Vauxhall in Britain and the recognition of its workforce. The PSA executives said that they, too, greatly valued the Vauxhall brand and the commitment of its workforce, and that any deal would build on these strengths. They also emphasised that their operational approach in recent years has been not to engage in plant closures, but to focus on continuous improvements in plant performance. On behalf of the UK Government, I emphasised our commitment to securing continued mutually beneficial access to European markets, and our intention, as part of an ambitious industrial strategy, to enhance the competitiveness of the UK economy generally—including, of course, the automotive sector. Earlier today, my Minister of State spoke to his German counterpart.

We remain in close contact with GM, PSA and the French and German Governments, and I look forward to meeting Carlos Tavares, PSA chief executive, later this week. Of course, I have also met, and will continue to meet, the trade unions and Members of this House with constituency interests. I will do everything I can at all times to secure the best possible future for Vauxhall and its workforce. Our unity of purpose in seeking this good future should be a source of strength in the House, and I will keep the House informed at every opportunity.

[Justin Madders]

I thank the Secretary of State for his response and for the helpful way in which he has kept me and other interested parties informed as matters have unfolded. As he said, not only are thousands employed directly at the plants in Ellesmere Port and Luton, but there are tens of thousands of other people working in the associated supply chain and sales network.

I want to make it clear that Vauxhall is a British success story. The plants in Ellesmere Port and Luton benefit from dedicated and highly skilled staff, who are among the most efficient anywhere in Europe. If this takeover does go ahead, we need to get the message out that risking the closure of either facility would be a retrograde step not just for the UK economy, but also for the new owners. Will the Secretary of State confirm that the Government stand ready to use all the tools at their disposal to safeguard British jobs at Vauxhall?

Of course, this is a worrying time for everyone affected, but it is not a new experience. There have been threats to the plants in the past, but they have been seen off by industry-leading collaborations between unions, workforce, management and Government. I want that to carry on, so can the Secretary of State confirm that he will continue to work closely with everybody at every stage?

Although it would be an over-simplification to characterise the proposed deal as being entirely down to Brexit, there are understandable concerns about Brexit’s potential impact, particularly if tariffs were imposed. Will the Secretary of State ensure that the future of the automotive sector is put front and centre of our negotiations and that a red line will be that there will be no deal that imposes tariffs—not just on the finished product, but on components in the supply chain?

We are very proud of our automotive sector in Ellesmere Port and Neston, but we know we cannot take it for granted. I will do everything I possibly can to fight for the future of Vauxhall, and I expect nothing less from the Government.

[Greg Clark]

I commend the hon. Gentleman, and I am grateful to him for giving us the opportunity to update the House on these matters. I completely agree with him about the importance and the success of the workforce at both Ellesmere Port, his constituency plant, and Luton, and of course the supply chain, the retail network across the country and the call centre and customer service sector.

Every part of Britain has a stake in Vauxhall, so I completely agree with the hon. Gentleman: we will do everything we can. My personal commitment, and the commitment of this Government, will be unbounded to make sure that the future, building on the success of the plant in the hon. Gentleman’s constituency and the workforce, will be maintained. That is my purpose, and I am grateful for the hon. Gentleman’s support for that. I will of course work with all the groups, including the trade unions and the workforce, to make that case to the new owners, if new owners there are to be.

Nissan: Sunderland

Debate between Justin Madders and Greg Clark

Monday 31st October 2016 Commons Chamber

[Greg Clark]

I have had the pleasure of meeting the First Minister at least twice since I took up this job. What I have said to her, personally and directly, is that, as we develop our industrial strategy, Scotland will have a big place in that. Of course it is important that all parts of the United Kingdom need to benefit from our industrial success in the future. The hon. Gentleman may know that, in terms of the city deals that have been negotiated between the UK Government, the Scottish Government and the various councils, we have, and I personally have—I think he would acknowledge this—a track record in making those discussions work.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I certainly welcome the news, and I am sure that the thousands of people who work at the Vauxhall car plant in my constituency would be equally delighted if a similar announcement could be made in due course. When the Secretary of State addressed the Chamber, he referred to different strategies for different industries, but does he also accept that, within the UK automotive sector, there are different challenges from plant to plant, and that a more specific approach may be needed from time to time? Will he agree to engage in an intimate dialogue with General Motors, as he has with Nissan?

[Greg Clark]

I am not sure I would describe the dialogue as intimate, but it was constructive at any rate. Of course I make that commitment to the hon. Gentleman.