Fiat and Vauxhall are set to merge

Published Date: 5th May 2009

It is thought that the Italian car giant Fiat is about to merge with Vauxhall. The new company would become the second largest in the world behind Toyota, selling up to seven million cars per year.

Vauxhall employs more than 5,000 workers in the UK, comprising 2,500 at Ellesmere Port, 1,200 at Luton and the rest at dealerships across the country.

If Fiat, which also owns Ferrari combines its car-making operation with GM Europe it would bring in around £71 billion in annual revenue.

Originally founded in London in 1903, Vauxhall has been wholly owned by GM since 1925 and is responsible for about 20% of its European revenues.

Fiat’s chief executive Sergio Marchionne has said the potential deal is a “marriage made in heaven” and he will assess the viability of the merger in the next few weeks.