Car giant seeks to allay plant closure fears

AUTOMOTIVE giant General Motors today sought to calm fears over mass redundancies and plant closures in the UK after news that it is axing 47,000 jobs worldwide.

More than 2,200 people work at General Motors’ Vauxhall plant in Ellesmere Port.

GM, which is trying to avoid filing for bankruptcy, said it is seeking a further £11bn of loans from the US government to help it weather the recession. The cutbacks represent around 20% of the company’s total workforce.

UK spokesman Denis Chick said: “The big thrust of the viability plan is the US, in fact it’s all about the US. Europe is in far better shape than the US and that’s for sure.

“There has been a lot of rubbish said and written about Ellesmere Port closing, and job losses, but it’s not true, it’s pure speculation.

“In the UK we’ve not gone beyond the working time reduction, and we have got to wait and see how this recession moves forward.”

However Mr Chick said job losses – which have so far been avoided –  could not be ruled out in the future.

The situation at GM came as think tank The Work Foundation called for more support from the UK government for the manufacturing sector.

It argues that the sector should get the same level of help as has been provided to ailing banks.

Ian Brinkley, associate director, said: “The question needs asking – what are we going to live on in the future?

“Modern manufacturing is once again facing a battering from the recession, but it would be a big mistake just to write the sector off. We need to preserve as much of the industrial base as possible because once it is lost it is near impossible to get back again.

“Despite the myth-making around the demise of manufacturing, the sector remains extremely important for jobs, exports and GDP.”