Image source, Getty Images

Professor Christian Stadler of Warwick Business School says the PSA/ Opel merger is likely to cost jobs, although he's not sure where.

"PSA has done it before and there is no other way to realistically achieve the cost savings they have in mind, which might possibly mean plant closures as well," he says. 

"Whether this is a Vauxhaul/ Opel plant or a Peugeot plant is hard to say at the moment."

But he adds: "The UK is definitely in a bad position as Brexit makes it less competitive than Germany and the unions are stronger in Germany." 

Vauxhall's Vivaro van will be produced in Luton for at least another eight years, says Gavin Shuker, the local MP. He also says the plant is one Opel's most efficient.

However, he says the plant's future will depend on the sort of efficiencies PSA wants to make, and more crucially on the Brexit deal the government negotiates. 

"What we need is to avoid the hardest of Brexits as that would mean we wouldn't be able to export our goods.

"In practical terms, 70% of the parts for this van come in from Continental Europe and we export a huge amount."

The boss of PSA Group Carlos Tavares says that the future of plants is in the hands of the workers.  

Building cars requires a web of suppliers all feeding parts to assembly plants. The firm Vendigital works on those so-called supply chains.

Richard Gane, is the firm's director and automotive sector specialist: "While it is not yet definite that the plants will close, there is clearly concern that this could happen because, in the case of the Astra, around 75% of components are sourced from the EU and the vast majority of the vehicles made at Ellesmere Port are sold outside the UK.

"If rumours are correct and PSA Group is planning to combine platforms with Peugeot’s next new model, there would be a strong reason to exit the UK."

Image source, Reuters

There could be less choice in engines and body styles following the PSA/ Opel merger, says Jim Holder, editorial director at Autocar.

That's because the combined firm is likely to share parts and production techniques, he says. 

However, he says VW has done this with Seat, Skoda and Audi "very successfully" for many years. 

This from Len McCluskey, Unite general secretary:

“I am determined that we can convince the new boss, Mr Tavares, that it makes sense for him to continue to build in Britain.

"Our plants are the most productive in the European operation, the brand is strong here, the market for the products is here, so the cars must be made here.

“But there is also a role for the government to play. The uncertainty caused by Brexit is harming the UK auto sector.

"Wednesday’s Budget is a perfect opportunity for the government to make is clear that it will preserve our trading arrangements and that it will invest for our auto sector’s future now, beginning with assistance for the re-shoring of components."

PSA could turn around the loss-making Opel and Vauxhall brands very quickly, says Jim Holder, editorial director of Autocar.

He notes the brands were on the cusp of being profitable last year, and the tie-up now gives PSA much more scale to "leverage".

However, he says there will be 24 factories in the combined group - two of which are in the UK - and all will have to "prove their competitiveness". 

Worryingly, the two UK sites are "under-performing" which leaves them vulnerable for now. 

Norman Smith
Assistant political editor

" Government sources say they are 'cautiously optimistic' about the future of car production at Vauxhall.

"Ministers believe the recent buyout by PSA could even lead to increased production and more jobs in the UK.

"It's suggested PSA may seek to relocate some Peugot production to UK car plants - to maximise sales in Britain.

"It's also argued that Britian is increasingly attractive to car manufacturers because of its leading role in developing electric cars, low carbon and battery technology.

"Sources say because Vauxhall has a 16% share of car sales in the UK - it would be in PSA's interest to retain a base in the UK.

"Mr Clarke also received assurances that there will be no change to pensions, jobs or production at Vauxhall up to 2020/21. Mr Clarke spoke to the bosses of PSA/Peugot over the weekend."

PSA boss Carlos Tavares has said a so-called hard Brexit could boost PSA's operations in the UK.

He said the firm might have to open new plants in the country, to get around any tariffs on importing cars into Britain.

"[There is] the opportunity to have inside of the UK some manufacturing plants in case we have a hard Brexit," he said. "All of this represents opportunities that we want to tackle."

Former Business Secretary Sir Vince Cable tells John Humphrys there are doubts over the jobs because of the government's "lack of commitment to the customs union and the single market".  

Image source, PSA

PSA boss Carlos Tavares does not guarantee jobs won’t be lost at Opel/ Vauxhall.

But he says his planned efficiencies aren't based around job cuts, and that “everyone will be given a chance to meet the benchmark of efficiency”.

"You can make efficiencies at a plant but only if the workers believe you are giving them a chance," he says.

He also says that, since he took over as CEO, the firm has not closed any plants despite improving overall efficiency.

BBC business reporter has been listening to the press conference being held by bosses of Vauxhall, Opel and Peugeot.

"Here in Thailand, Opel has a poor reputation as the cars sold here were made in India. GM also is not highly regarded selling under the brand of Chevrolet.  

"However there is really a great opportunity for cars to be sold here under the Vauxhall brand and promoted heavily as coming from the UK.

"Here in Thailand products made and branded from the UK are highly regarded.  The UK is still thought of as a trusted and good quality provider of goods. The MG brand trades on this even though the company is no longer owned by a UK company!"

Got a view on the Peugeot/Vauxhall/Opel deal? Then email us at: bizlivepage@bbc.co.uk.

Image source, PSA

PSA boss Carlos Tavares says his firm will "support and help" the Opel and Vauxhall employees to find "themselves a better future". 

However, he seems to be saying the brands will have to prove their worth, too.

His aim is to "support and accelerate the turnaround" at Opel/ Vauxhall, and he says he believes in the quality of both brands.

But he adds, for a company that had a "near death" experience a few years ago, the only thing that will ensure its future is strong "performance". 

Dominic O'Connell
Business Presenter, BBC Radio 4 Today programme

"The £1.9bn headline price suggests both General Motors and Peugeot think the former’s European operations have significant value.

"The fine print of the deal suggests something slightly different, and shows that GM has in fact taken a hit of up to £6bn in order to get shot of Vauxhall and Opel.

"First, a big chunk of the price – three-quarters of a billion pounds – is not for car plants, but for loans taken out by the owners of Opel and Vauxhall cars through GM’s finance arm.

"Second, GM is keeping most of the outstanding pension liabilities. 

"Third, the Detroit giant will take an accounting hit of £3.2bn on the deal – a confirmation that the value it had placed on Opel and Vauxhall in its own books was born more out of hope and the scale of past investments than any solid expectation of future profits."

Image source, PSA

Karl-Thomas Neumann, CEO of Opel and Vauxhall, says he is "optimistic that Vauxhall and Opel will be in stronger position in the future". 

He says the firm's financial results have been improving, and without the Brexit vote, it would have been profitable last year.

He also says the deal will bring the Opel and Vauxhall engineering teams closer together - and that Opel and Vauxhall will remain "true" German and British brands respectively. 

Today Programme
BBC Radio 4

"Every car plant job supports about seven and a half jobs in the wider supply chain," says Matthias Holweg, scientific advisor to the Automotive Council.   

He points out that you need scale to maintain the wider components industry, so losing just one plant can have significant knock-on effects.

Sir Vince Cable acknowledged that once Brexit has happened, the UK government will be much freer to offer Peugeot incentives to keep UK plants open.

Image source, PSA

GM boss Mary Barra says the merger is "a win for both sides".

“We know that together PSA, Opel and Vauxhall will be in a much stronger position than they are today,” she tells a press conference. 

She says both Opel and Vauxhall have been "very successful", but as trends in the car industry changed, GM saw the need for change.

She suggests the deal will benefit GM shareholders by "reducing balance sheet risk", unlocking $2bn of capital which the firm will use for share repurchases.

She also says PSA and GM will continue to work together (as they have been doing) on certain vehicles.

Today Programme
BBC Radio 4

"The timing is terrible for the UK,"  says Matthias Holweg, is the scientific advisor to the Automotive Council.

He says that looming Brexit will make it harder for the UK to keep Vauxhall production. 

But he says it's not all gloom. Ellesmere Port won Astra production against competition from German plants

"Germany may be very productive, but you are facing some very tough industrial relations in Germany and particularly in France."

Image source, PSA

PSA boss Carlos Tavares has said the firm is "excited" to create a European champion to combine a French and German compnay. 

"With our support, we will release the full potential of the Vauxhall and the Opel brands," he told a press conference. 

He also said he trusted the managers of both brands to "accelerate the turnaround" of the loss making businesses.