Britain urges 'fair' Opel deal

Britain said today that European regulators should ensure that takeover of automaker Opel does not favour workers in German plants…

Britain said today that European regulators should ensure that takeover of automaker Opel does not favour workers in German plants.

"I think it is important to say that the (European) Commission should not accept anything that looks like a political fix or any linkage between aid and retention of jobs in any specific plant or country," British Business Secretary Peter Mandelson told BBC Radio 4.

General Motors agreed last week to sell a 55 per cent stake in Opel to Canadian automotive supplier Magna and Russia's Sberbank, finally bowing to Berlin's wishes after months of intense talks.

Former Belgian prime minister Guy Verhofstadt told Reuters at the weekend he had asked European Commission president Jose Manuel Barroso to ensure that the deal did was fair to other countries such as Belgium and Britain that also host GM plants.

"Our Vauxhall plants at Ellesmere Port and Luton are highly efficient and I am sure, and we insist, that this be recognised," Mandelson said.

"There will be some tough detailed negotiations that lie ahead and it's very important that the European Commission takes a role and a hand in these negotiations," he added.

Unions fear at least 800 job losses from 5,000 workers applied at the two GM Vauxhall plants in Britain.

Germany is putting up €4.5 billion in state guarantees to grease a deal it hopes will preserve jobs in Germany, where half of Opel's workforce is based.

Reuters