Magna buys Vauxhall - Updated

ALMOST 1,400 jobs could be lost at Vauxhall’s two UK plants, according to a leaked business plan from the firm’s new owner.

The document worked out by Canadian parts maker Magna International, which is set to take control of Opel and Vauxhall from General Motors, proposes 11,000 job cuts across Europe.

A spokesperson for the Department for Business, Innovation and Skills (BIS) moved to allay fears, however, dismissing reports that the number of job cuts had already been decided.

“Speculation on job losses across General Motors Europe is unhelpful at such early stages of the negotiations," said a spokesman. "Every aspect of these negotiations is under very active discussion and the government is working to secure the best possible outcome for Vauxhall in the UK.

According to sources, the firm’s plan will be discussed with unions and Governments later this week.

How any losses would be divided across the UK's Ellesmere Port and Luton plants has not yet been made clear.

However, union bosses in the UK have previously indicated that workers at the Luton site, where the Vivaro van is built, could be most at risk.

Vauxhall currently employs 4,475 staff in the UK.

The leaked plan shows that 4,116 of Opel’s German workers could be laid off, Spain could lose 2,090, and all of the 2,517 workers at its Antwerp plant in Belgium may be made redundant.

Magna was named the successful bidder for the firm earlier this month by the German Prime Minister Angela Merkel.

At that time, UK Business Minister, Pat McFadden also gave the news a cautious welcome, commenting: “Our objective throughout has been to get the best possible outcome for the Vauxhall workforce and the production plants in the UK.

We have been in close contact with all parties throughout including GM in the US and Europe and all the potential bidders.

Now GM has announced its preferred bidder is Magna. We will now continue our discussions with Magna: they have told us of their commitment to continuing production at both Ellesmere Port and Luton and we will work to make sure we get the best possible outcome for the UK.”

The bidding process, which began earlier this year, is reported to have attracted interest from a wide range of parties including Belgian investment group RHJ.