GM silent on Vauxhall plant’s future

GENERAL Motors, the US automotive giant has posted bumper financial results, but given no detail on its plans to cut losses in its European arm, which includes Vauxhall.

Detroit-based GM said profits for 2011 surged to $7.6bn, led by a strong performance in North America and growing sales in China. In Europe though, losses were $747m in 2011 – and $562m in the final quarter.

Although the company did not set out any plans for to address the losses in Europe, General Motors’ chief financial officer Dan Ammann was quoted yesterday as saying :”The industry environment is very challenging, the economic environment is very challenging, We’re working aggressively on plans on each part of the business.” 

Reports last week – dismissed as speculation by the company and unions – suggested that the Vauxhall Ellesmere Port plant, where the popular new Astra Sports Tourer is made, is under threat of closure.

The giant site, which as more than 2,000 employees, is seen as one of the most efficient in Europe. Its loss would be a hammer blow to the North West economy and the automotive supply chain in particular.