PM and Peugeot have 'shared desire' to protect Vauxhall jobs

Theresa May has spoken by phone to the boss of Peugeot (Other OTC: PUGOF - news) amid fears the company's planned takeover of Vauxhall's parent company could hit UK jobs.

Downing Street gave little away in its reporting of the conversation as speculation intensifies over what a deal for General Motors Europe could mean for 40,000 manufacturing, retail and supply chain workers in the UK.

The statement said: "The Prime Minister spoke to the Chairman of PSA Peugeot-Citroen, Mr Carlos Tavares, this afternoon.

"The Prime Minister and Mr Tavares discussed the importance the UK attaches to Vauxhall's plants at Ellesmere Port and Luton and their shared desire to protect and promote the jobs it supports and what Mr Tavares referred to as the 'iconic' Vauxhall brand within the wider group.

"The Prime Minister reiterated the Government's commitment through our modern industrial strategy to creating and supporting the right conditions for the UK automotive industry to go from strength to strength, now and into the future.

"A particular shared goal was strengthening the UK's automotive supply chain.

"The Prime Minister and Mr Tavares agreed that they and the Business Secretary would remain in close contact as discussions progress to ensure UK interests continue to be at the forefront of any future deal."

There have been various reports on Wednesday over PSA's intentions.

The Press Association said loss-making GM Europe, which also owns the Opel brand, and PSA were keen to announce a deal before the Geneva Motor Show in a fortnight.

Reuters, citing sources, suggested PSA was expecting €2bn in annual savings from a shake-up of the Opel operations, with some production being moved to its own plants in France.

There are rumours production of the Astra, which protects 1,900 manufacturing jobs at Ellesmere Port currently, could cross the channel but nothing has been said publicly about PSA's plans.

Speaking before Mrs May's conversation with Mr Tavares, the Unite union general secretary Len McCluskey said: "A very concerning picture is emerging here, made more distressing by the constant rumours running in the media.

"Vauxhall workers and their union Unite have yet to be advised of General Motors (NYSE: GM - news) ' plans but I say again to both auto makers and the UK Government, we will not accept any threats to UK plants and jobs.

"I will be reinforcing this when I meet with Carlos Tavares, the Peugeot head, this Friday.

"I will be saying again to him that GM has a unique place in the UK's market place, and that the company's share of that market has never been higher so do not mistreat loyal UK workers and customers."

Business Secretary Greg Clark told MPs (BSE: MPSLTD.BO - news) on Monday the UK would start negotiations on Vauxhall, if needed, from a position of strength given the brand's significant market presence and technical expertise.