PSA Group told German Chancellor Angela Merkel and top labor representatives that it would uphold Opel and Vauxhall job guarantees if it buys the European arm of General Motors Co (GM), though some analysts say thousands of job losses are likely eventually.
As part of a sweeping charm offensive of the political and automotive establishment in Germany, PSA chief executive Carlos Tavares discussed his plans with Merkel on Tuesday, after seeking to reassure powerful German labor union IG Metall and Opel’s European works council on Monday about the impact of any deal on existing sites.
“PSA Group reaffirmed its commitment to respect the existing agreements in the European countries and to continue the dialogue with all parties,” Peugeot maker PSA said on Tuesday.
Tavares’s discussion with Merkel, in a telephone call, was “fruitful,” PSA said.
He presented the rationale for creating a European champion with five “complementary” brands with deep roots in their respective domestic markets and told Merkel that Opel would benefit from considerable independence within the group.
“The tone of the exchange was very convivial and Chancellor Merkel was very receptive to our arguments,” PSA said.
According to a German government spokesman, he also said that PSA would give plant, investment and job guarantees.
The labor ministers of France and Germany said that they believed a deal between GM and PSA would be a “win-win situation” for both countries.
“We believe that both locations could benefit from it — both the French and the German plants. German-French cooperation could really spawn a champion company and that’s why we’re very pleased about the development today,” German Minister of Labor and Social Affairs Andrea Nahles said, speaking at a BMW motorcycle plant in Berlin with her French counterpart Myriam El Khomri.
Peugeot has agreed to adhere to existing pledges by GM not to impose forced redundancies on some of its German workforce until the end of next year.
Some existing agreements about building certain models at Opel stretch beyond 2020.
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