Chrysler deal Govt hangs on GOVERNMENT negotiations on the future
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of Chrysler have been cloaked in secrecy this week, but it now seems that Industry Secretary Eric Varley is making a stand on his demand for guarantees for the £162.5m lent to Chrysler by the Government.
The agreement signed by John J. Riccardo of Chrysler when the British Government rescued the company also contained clauses under which Chrysler agreed not to allow itself to become owner of less than 80 per cent of the UK firm.
Now lawyers are trying to find a way through the "tricky legal situation" presented by the proposed takeover.
So far Peugeot-Citroen has refused to give any guaran on the future of job: Chrysler UK—and it was t jobs that the Governn rescue operation was desij to protect two years ago.
Mr Varley is making it that he will not be hurried he wants precise answers1 the questions involved 13( he gives an answer—and t answers are being requc from both Chrysler Peugeot.
He is still smarting at way in which the takeover announced without any vance talks or informs from either side and he stil a lot of face to lose in the of those wo opposed rescue operation for American company.