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Sunday 05 March 2017 4:09 pm

Ministers have reportedly been given assurances over the short-term future of British jobs at Vauxhall

By: Mark Sands

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Ministers are confident that the imminent sale of Vauxhall to France's PSA Group will not affect 4,500 manufacturing jobs and pensions, according to reports.

PSA is set to make an announcement on its plans to acquire Vauxhall and Opel tomorrow, and it is expected the purchase will protect workers at Vauxhall plants in Luton and Ellesmere Port.

Prime Minister Theresa May has been among the figures locked in talks with the french car-maker over the deal, and now ministers have been given assurances that both the plants will be protected until at least 2021, the Sunday Telegraph reports.

Read More: Now German government officials are meeting with GM and PSA

PSA has reportedly reassured figures include business secretary Greg Clark that it will stick to plans which would see the Vauxhall Astra manufactured at the Ellesmere Port plant until at least 2021, and engines and other vehicles made at the Luton site until 2024.

The automotive sector could be among the hardest hit if the UK is unable to secure new trading terms with the EU, if tariffs increase prices and hit the desirability of manufacturing in the UK.

Read More: Peugeot's PSA has closed on a deal to buy Opel and Vauxhall

Concerns have also been raised over the future of the pensions scheme at the UK manufacturer, currently owned by General Motors.

Unite and the department of Business, Energy and Industrial Strategy both declined to comment.

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