2023-11-27 UK Asks for EU Decision on Opel Sale - autoevolution

UK Asks for EU Decision on Opel Sale

Things are getting more complicated for Magna every hour as several countries hosting Opel factories are asking for EU's investigation over the deal. British Business Secretary Peter Mandelson told BBC Radio 4 that the European Commission should ensure that Opel's sale to Magna International doesn't favor Germany and the domestic plants.

"I think it is important to say that the (European) Commission should not accept anything that looks like a political fix or any linkage between aid and retention of jobs in any specific plant or country," he was quoted as saying by Reuters.

Former Belgian Prime Minister Guy Verhofstadt recently revealed that he asked the European Commission President to investigate the deal and decide whether the agreement is fair for all those involved, including other countries that are hosting Opel factories.

"Our Vauxhall plants at Ellesmere Port and Luton are highly efficient and I am sure, and we insist, that this be recognized," Mandelson said. "There will be some tough detailed negotiations that lie ahead and it's very important that the European Commission takes a role and a hand in these negotiations," he added.

According to Magna's plans, approximately 10,500 Opel jobs will be eliminated under its ownership, with approximately 4,500 employees working at German plants.

Germany will provide $4.5 billion euros (around $6.6 billion) to support the Opel restructuring process, with other European countries hosting important Opel facilities to also contribute to the loan package. Other European countries hosting Opel factories will also contribute to the funding package but it's yet to decide how much and when is the money going to be approved.
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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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