Fears for thousands of jobs at Vauxhall’s UK factory as General Motors warns of ‘horrendous’ losses across Europe

By
Ray Massey

Last updated at 3:59 PM on 9th February 2012

Fears for thousands of British jobs and the future of Vauxhall’s UK car plant have surfaced after bosses at US parent company General Motors warned of ‘horrendous’ losses in Europe to be announced next week.

Executives of the American car giant in Detroit say they are considering closing the Ellesmere Port factory in Cheshire as part of a major restructuring of its Vauxhall/Opel operation as it prepares to announce fourth quarter losses in excess of $300million (£190million).

An Opel factory at Bochum in Germany has also been cited for potential closure.

Vauxhall's Ellesmere Port factory, which employs 2,100 people might be closed as General Motors attempts to reconcile losses

Vauxhall’s Ellesmere Port factory, which employs 2,100 people might be closed as General Motors attempts to reconcile losses

Executives say that there is overcapacity in Europe and that plant closures are ‘inevitable’.

Bosses in Britain admit that ‘everything is on the table’ and are discussing cost-cutting measures with unions.

UK union sources say they are ‘deeply concerned’ and say it would be a massive blow to the UK economy.

A Vauxhall source said: ‘Everything is on the table. That includes plant closures. 

‘But nothing has yet been decided. Unions are being included in discussions. It is serious.’

Worries about the fate of the Ellesmere Port factory – one of the most efficient in Europe which builds the Vauxhall Astra –  and its workforce  surfaced after the respected Wall Street Journal quoted unnamed General Motors executives in Detroit.

The newspaper published: ‘As part of the discussions, GM is considering closing assembly plants in Bochum, Germany, where it employs about 3,100 workers and Ellesmere Port, England,  where it has about 2,100 workers, these people said.’

The GM official told the financial paper: ‘There is increasing frustration with Opel and a feeling that the cuts two years ago did not go  nearly deep enough. 

‘If Opel is going to get fixed, it is going to get fixed now and the cuts are going to be deep.’

Workers leave Vauxhall's Ellesmere Port factory in 2009 after the motor giant announced it's plan to axe 900 jobs at its UK car factory and cut production

Workers leave Vauxhall’s Ellesmere Port factory in 2009 after the motor giant announced it’s plan to axe 900 jobs at its UK car factory and cut production

Ellesmere Port builds the Vauxhall Astra Sports Tourer estate car and the 5-door Astra hatchback. 

Some 80 per cent of its production is exported and 20 per cent of its components are sourced in the UK.

Industry sources said that when GM reports fourth-quarter results next week on Feb. 16, GM Europe’s loss will be larger than the $292 million (£185m)  loss of the prior quarter. 

However, it will be lower than the $568 million (£360million)  loss of the fourth quarter of 2010.

The German union IG Metall has already refused to consider immediate plant closures or job losses.

General Motors in Europe has  sufferd losses  of  nearly £9 billion sinvce 1999.

Vauxhall and Opel chief executive Karl-Friedrich Stracke has told employees that cuts do need to be made with the exact  measures planned to be set out after next week’s annual results. 

He stressed that no decisions have been made to close plants, shift vehicle production or cut jobs.

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Ellesmere Port has a CH postcode which stands for Cheshire many years ago it came under the L post code which was for Liverpool but then all the boundaries were changed. I hope the factory survives as i have may friends who work there, fingers crossed their jobs will be safe.

Pi**ssed off Brit:Oxfordshire,UK. Time for the govt: to step in.
Don`t hold your breath,think what happened to Bombadier

Ellesmere Port is NOT in Cheshire. – Violet, England, 9/2/2012 22:15 As already said, yes it is. I am curious though as to which county you thought Ellesmere Port was in? (not being rude, am genuinely curious – being from that area it is interesting to me) thank you

Time for the Govt to step in and just take over the whole UK side of the operation if they attempt to close the place.
Then put a decent management team in (or just use the in-house one) and restart production. It appears that the factory and workforce can produce good quality vehicles so they should sell.
In the long run it would probably be cheaper for the taxpayer to do that than it would be to watch the place close down and the workforce go on the dole.

Working up to a taxpayer funded handout.

Another car “brand” to be snapped up by China!

Vauxhall has a image problem and little brand loyalty these factors and overcapacity in two plants making the Astra one will close , GM Europe will now play Germany and British governments for aid and ask the unions and workforce for even more extreme working practices in the plant that remains.

The motoring expert Honest John has said that the Ellesmere Port plant had the lowest warranty costs in Europe – i.e. it was delivering top quality. The Astra is a triumph for British industry, overtaking the Focus and hyped Golf in 2010 sales, but slipping back a little in 2011. Astras are known mainly as a petrol car, whereas the Focus and Golf have more of a standing for diesel. If a historic part of the UK motor industry is lost, we should blame British governments with their greed over fuel taxes and obsession with harmless carbon dioxide emissions that have tilted the balance towards diesel.

in other word cars are not selling

Ellesmere Port is NOT in Cheshire.- Violet, England, 09/2/2012 20:15 Er, yes it is

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