Decision on Ampera next year says Vauxhall chief
GENERAL Motors Europe chief executive Nick Reilly says the company’s Ellesmere Port plant is “very much a contender” to be chosen to build the new electric car Ampera.
Speaking at the Cheshire factory on Friday after his first visit to the site since taking over the role last year, Mr Reilly – who used to run the plant earlier in his career – said a decision on where the Ampera will be built would be taken in “about 12 months’ time”.
“The car itself is terrific – we drove it from Germany to the Geneva Motor show – 500km without having to stop. Initially, until we are able to make the battery more cheaply I think the cost will be higher than standard engines, but I think because of the environmental impact of the car interest will be strong.
“I think the first high volume of sales will be from government and fleets too. There are a lot of plants bidding to build the model, but Ellesmere Port is very much a contender.”
He said a key factor in the decision was having a strong local supply chain, which would keep production costs low.
Mr Reilly said he has a “strong affinity” with Ellesmere Port , which employs around 2,200 people – and praised the major improvements in effeciency, safety and productivity it had achieved in the last five years.
It is currently the lead plant for the latest Astra model, and a new estate version will begin production there in November, meaning a hike in production and the launch of a third shift.
He said: “The plant has done really well, the team here are passionate and enthisastic about the business and it shows. If the people hadn’t made these improvements I may be here for a very different reason.”
Mr Reilly praised the Government for its support of GM’s restructuring plan – which is designed to reduce capacity and return the business to profit.
“They have done all we have asked of them. We’ve worked closely with them on our business plan and I think they have a good degree of confidence in us to deliver it.”
Ten days ago the Department of Business agreed to provide £270m in loan guarantees to support General Motors. The company is in the throes of finalising similar deals with other European goverments.
Mr Reilly said he expected 2010/11 to be a tougher year for new car sales than 2009/10 – because of the end of government-supported scrappage schemes to boost demand.
He said GM’s business plan did not see demand returning to 2007 levels for “five or six years”.
