Vauxhall Unions Oppose Magna's Bid

A new day, a new chapter in Opel's months-long story. Unfortunately, for the Canadian - Austrian parts manufacturer, things are getting worse as the British labor union Unite is opposing Magna's takeover bid for Opel/Vauxhall. The reason? The Canadian - Austrian partsmaker would fire more than 1,000 workers in case it takes the controlling stake.

But union officials told The Guardian that Magna would fire more Vauxhall employees than RHJ International in the eventuality of a takeover. Some leaked Magna documents revealed last month that Magna wants to cut Vauxhall's workforce by more than 1,000 jobs at Ellesmere Port and Luton.

On the other hand, Magna last week submitted a new proposal to General Motors, but details on the revisions to be included in the new documents are yet to be disclosed.

As you know from our previous coverage, opinions on who's better for Opel are still divided, as Germany and some country officials are supporting the Canadian - Austrian partsmaker. General Motors on the other hand thinks RHJ's bid is better for its German unit.

"RHJI's proposal is the simpler of the two, there were very few significant issues with this offer, so most of our time has been spent working with the Magna/Sberbank team. As noted in my prior blog post, the Magna proposal is more complex, owing to the inclusion of Russia and a third, Russian-based investor," John Smith, GM Group Vice President (and GM’s chief negotiator for the sale of a stake in Opel/Vauxhall), said last week.

"We started the week with about 30 issues to resolve, including NewOpel involvement with Chevrolet in Russia, intellectual property transfer rights in Russia, advanced technology access, product development responsibilities, minority shareholder rights and other items."
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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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