Uncertainty continues over Vauxhall plant’s future

UNCERTAINTY over the future of Vauxhall’s Ellesmere Port plant in Cheshire is set to continue until after Easter.

Although parent company General Motors insists no decision has been taken, leaked documents published by the  German media – the location of the HQ of GM’s loss-making European business – suggest otherwise.

The magazine Der Spiegel published details what it claims is an internal “strategy document” which suggests that Ellesmere Port – which employs around 2,100 peolple and several hundred more contractors – and the Bochum plant in Germany will be closed as part of a cost cutting plan.

GM would then source the models from lower cost countries as it tries to address over-capacity and a $500m annual loss in Europe in 2011.

It had been reported, inaccurately as it turns out, that the Opel supervisory board was set to discuss the possible plant closures at a meeting on Wednesday-  but Vauxhall insists this was never on the agenda.

Christine Gaskell, chair of the Cheshire  and Warrington Local Enterprise Partnership – the private sector-led economic development body which covers Ellesmere Port – said the future of the plant and the people working there is a concern.

“I think it’s something in the region we’re all concerned with. I am sure for the workforce at Ellesmere Port it’s a very worrying time, and a very difficult situation to be in.”

The Ellesmere Port site – which is celebrating its 50th anniversary this year – is currently producing the Astra Sports Tourer model – an estate version of the popular hatchback. It is regarded as being one of the most efficient plants in the group.

GM bosses have already said none of its European facilities will close before 2014 – in line with a pledge made to trade unions, but beyond this date the future is unclear.

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