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Is GMs U-turn On The Magna Deal a Good Sign For The Car Leasing Industry?
posted on Nov 04 2009 by Jade Hensby
As I'm sure you'll know by now, General Motors have decided not to see Vauxhall/Opel to Canadian car parts company, Magna. The news has been met with mixed reactions around the world. In the UK, Unite Union Chief Tony Woodley and Business Secretary Lord Mandelson have both reacted positively. The Germany government along with trade unions in Germany are not so pleased. The German government provided the 1.5bn-euro bridging loan to Opel to keep it afloat during the long, drawn out negotiations over the past few months to find a buyer. Now the workers in the UK's Ellesmere Port plant, where they are manufacturing the new Astra have to wait and see how this decision will affect their jobs. Lord Mandelson has said he is keen to start discussions as early as possible to sort out the british car workers' futures.
What do I think this means for the UK car leasing industry? It's very early days so it's tough to say. However, GM have obviously seen something they like about continuing to operate in the UK, so this could very well be the start of some better times. What do you think Leave your opinion in the comments below. Here's the full story over on the BBC news website.