UK offers Peugeot guarantees on post-Brexit auto industry

2017/2018 Opel Crossland X images

Britain has offered Peugeot maker PSA Group guarantees on post-Brexit trade and supply chains in an effort to protect Vauxhall auto plants after a potential takeover, according to a Financial Times report on Saturday.

Business, Energy and Industrial minister Greg Clark met French political leaders and PSA executives in Paris on Thursday to talk about their strategy to buy General Motors’ Opel, that include Vauxhall plants in Britain.

The discussions have set political scenario in Britain and Germany, where there are worries regarding a sale to the French business that it may cause heavy job losses.

Clark stated on Friday, after the conference, that PSA executives had “stressed that they valued extremely the enduring strength of the Vauxhall brand, underpinned by its committed workforce”.

FT cited an individual with understanding of the meeting, that Clark had likewise made commitments much like those he provided Nissan in 2016 prior to it revealed it would construct 2 brand-new models in Britain.

Clark promised Nissan that he would make sure more vehicle part suppliers were based in Britain, assistance training and research study into electrical and low-emission cars, and push for “free and unencumbered” access to European Union markets for automakers after Britain leaves the EU.

The government has refused to give specific details of its guarantees to Nissan, pointing out commercial privacy, though government auditors who saw the letter stated it did not make the government accountable for Brexit-related costs sustained by Nissan.

Britain’s business ministry refused to comment on Saturday on whether Clark had made comparable commitments to PSA.

The report quoted Clark as saying that he and PSA executives had “talked typically about our commitments and interest for research in electrical vehicles and batteries”, but included that the minister did not provide additional detail.

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