Cable meets GM bosses over UK plans

BUSINESS Secretary Vince Cable has travelled to the US for top level talks with General Motors’ bosses seeking them to make a long term commitment to the UK.

The meetiing in New York took place against a backdrop of continuing uncertainty over the future of GM’s Vauxhall Plant at Ellesmere Port, which employs more than 2,000 people.

Despite being one of the car maker’s most efficient plants in Europe, GM is looking at ways of cutting costs in its European business which lost $500m last year. It has been suggested that Ellesmere Port and a plant in Bochum, Germany, will be shut, although the company and unions have branded this as speculation.

Mr Cable met General Motors’ chief executive Dan Akerson and vice chairman Steve Girsky in New York on Wednesday, where he advanced the cause for the company to invest more in the UK automotive sector, which has seen major investment from Jaguar LandRover and Nissan in the last few months.

Meanwhile in a move un-related to the restructuring of GM’s European business around 150 staff at Ellesmere Port are being offered voluntary redundancy.

A Vauxhall spokesperson said; “It is common practice to balance supply with demand to avoid building up stocks and as a consequence of the continued economic downturn a number of employees will be offered voluntary separation packages at our Ellesmere Port plant.”

The Ellesmere Port plant is the home of the popular Astra model. It is currently producing around 47 Astra Sports Tourers – the estate version – an hour.