UNION chiefs say a merger to create the world's fourth biggest carmaker should pave the way for new models to be produced at Vauxhall's Ellesmere Port plant.

The merger between Fiat Chrysler and France's PSA Group, which includes the town's North Road site as well as a factory in Luton, won approval from both sets of shareholders yesterday (January 4).

Today, Unite has welcomed the news and urged the new company to reaffirm its commitment to no plant closures in UK and draw up a long-term plan for the production of electric vehicles at Ellesmere Port and Luton.

The union – in light of the recently announced post-Brexit free trade deal with the EU – is also calling for the North Road factory, which employs around 1,000 workers, to now be awarded production of the new Astra.

Unite national officer for automotive industries Des Quinn said: "This merger is good news for our members at a bleak time for the UK economy.

"We welcome the approval of both sets of shareholders to create the fourth biggest global carmaker and will seek reassurance that the new merged company will continue to commit to no plant closures, as was previously announced in November.

"Specifically in the UK, we call upon PSA to look at a longer term plan to build electrified vehicles at both Luton and Ellesmere Port with future regulatory and legislative changes in mind.

"At Ellesmere Port, it is also now time for our members to be rewarded for their ongoing commitment and having met all cost requirements to be awarded new product – currently, it is the only plant in Europe not to have been.

"Previously the management have said that this decision will not be made until there is a clear understanding on the outcome of discussions between the British government and the European Union (EU).

"Now the free trade deal with the EU has been agreed by both sides with no tariffs or quotas, this should create the necessary business environment the company was seeking.

"Therefore, there should be no further delays in announcing new models at Ellesmere Port."

Shareholders of Fiat Chrysler and PSA Peugeot decisively voted yesterday to merge the US-Italian and French manufacturers to create the world’s fourth-largest car company.

Addressing separate meetings, both PSA Peugeot chief executive Carlos Tavares and Fiat Chrysler chairman John Elkann spoke of the “historic” importance of the vote, which combines legacy car companies that helped write the industrial histories of the United States, France and Italy.

The merger will bring together well-known brands such as Peugeot, Citroen and Vauxhall from PSA with Fiat, Jeep and Chrysler.

Before it is finalised, shares in the new company, to be called Stellantis, must be launched.

“We are living through a profound era of change in our industry,” Mr Elkann told the virtual shareholders’ meeting.

“We believe that the coming decade will redefine mobility as we know it.

“We and our merger partners at Groupe PSA are intent on playing a leading role in building this future.

“It is this intention that has brought us together.”

Stellantis will have the capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota and Renault-Nissan, and create five billion euros in annual synergies.