Theresa May to Meet Peugeot CEO Amid Concerns Over Vauxhall -- Update
February 19 2017 - 11:36AM
Dow Jones News
By Jenny Gross in London and Ruth Bender in Berlin
British Prime Minister Theresa May is expected to meet Peugeot
Chief Executive Carlos Tavares this week to discuss the French car
maker's proposal to buy General Motors Inc.'s Vauxhall unit, a U.K.
government spokesman said.
At the meeting, Mrs. May will seek safeguards for Britain's car
industry as she seeks to head off concerns that Britain's exit from
the European Union will put the auto industry at risk. The deal--as
part of a proposed acquisition of GM's Opel unit, based in
Germany--would create Europe's second-largest auto maker by sales,
and could affect thousands of British workers at unprofitable
Vauxhall.
"The government is prepared to step up to the plate and play a
role, as opposed to just letting it happen," said a U.K. official
familiar with the discussions.
In Germany, where the deal has also drawn resistance from trade
unions and politicians, Peugeot general counsel Olivier Bourges met
last week with officials from the chancellery to discuss plans for
Opel, according to a Peugeot spokesman and German officials.
Spokesmen for the German government and Peugeot declined to
comment on the contents of the meeting. One official cautioned that
it was just one of many currently taking place between the parties
involved.
German Chancellor Angela Merkel has said her government would do
everything to keep jobs and factories in Germany safe.
On Thursday, German Economics Minister Brigitte Zypries plans to
meet her French counterpart in Paris.
In the U.K., the talks come as Britain prepares to start
negotiations on its exit from the EU next month. Brexit has created
particular uncertainty for auto manufacturers, which are highly
dependent on the bloc for sales and parts. Executives have said
stiff tariffs as a result of Britain's exit would threaten the U.K.
sector.
In a meeting with Peugeot last week, Business Secretary Greg
Clark gave the same assurances the U.K. government gave in October
to Nissan Motor Co., the owner of the U.K.'s largest car factory by
volume, the U.K. official said. It is unclear what form of support
Britain promised aside from broad assurances that the U.K. would
remain a business-friendly environment once it leaves the EU.
Mrs. May in October persuaded the Japanese car maker to keep
producing cars in the U.K. after Britain leaves the EU,
safeguarding 7,000 jobs after Nissan had threatened to move
production out of the U.K. amid fears of higher taxes after
Brexit.
Mr. Tavares is also set to hold talks with Len McCluskey, leader
of Britain's biggest trade union, this week.
Write to Jenny Gross at jenny.gross@wsj.com and Ruth Bender at
Ruth.Bender@wsj.com
(END) Dow Jones Newswires
February 19, 2017 11:21 ET (16:21 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.