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Magna, UK Govt to Start Vauxhall Funding Talks

The British government representatives will meet with Magna officials this week to discuss the require funding to support Vauxhall. Business Secretary Peter Mandelson said today in Tokyo that the United Kingdom is ready to help the local carmaker by providing funding for green car technology, just-auto.com informed.

"I hope he will have good discussions with union leaders," he said while talking about the meeting between Magna's co-CEO Siegfried Wolf and unions. "They're looking for hard information and strong assurance of the future viability of Vauxhall's plants. We've given support in the past to Vauxhall for development of their green car and I'm prepared to consider that further."

Leaked Magna documents revealed that the new Opel/Vauxhall owner is planning to cut 10,900 jobs, with approximately 1,400 workers employed by Vauxhall. According to the leaked papers, Germany would be the most affected, with 4,116 fired employees. Belgium takes the second spot with 2,517 fired employees, followed by Spain with 2,090 and the UK with 1,373.

The job cut prepared after the closure of the deal is one of the biggest problem for the Canadian - Austrian partsmaker, as Opel workers across Europe have already expressed their disagreement towards the layoffs. The Antwerp case for instance is causing headaches to officials representing Magna because workers have already joined forces to demonstrate against the potential closure of the plant in Belgium.

"We looked at it in detail but it just didn't make sense based on our own internal analysis," GM CEO Fritz Henderson said at the Frankfurt Auto Show. "That plant has been under evaluation for some time; no final decision has been taken. But it's certainly at risk."
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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