Vauxhall plant comes ‘back from the brink’

VAUXHALL director Phil Millward has said the last four months have been the “most difficult” of his 42-year career with the car manufacturer, as he fought to save the Ellesmere Port plant from the axe.

Mr Millward said Ellesmere Port, which has been dramatically reprieved by parent company General Motors , is the “greatest comeback kid ever”.

Reflecting on the decision by Vauxhall to invest £125m in the Cheshire facility, and create hundreds of new jobs – at least 700 will come with the launch of a new third shift – he told TheBusinessDesk.com: “I never accepted defeat and I have been working tirelessly since early January to bring this about. I am very, very pleased.

“Whenever there is any possibility of plant closures people always jump on Ellesmere Port, but this is a great plant, it’s highly competitive making an excellent product . We wouldn’t offer a lifetime warranty on our cars if they weren’t excellent.”

Mr Millward, a former apprentice at the plant who has risen through the ranks to the board, said the investment programme would “lay the foundations” for the next 50 years of production at Ellesmere Port – which celebrates its 50th year of manufacturing cars this year.

“I have to say there have been some difficult moments and I have to praise the staff for staying strong and focused and remaining as positive as they could despite constant rumours, gossip and speculation about closure.”

Mr Millward, pictured, revealed details of a four-year pay deal with the unions at the plant which  includes a two-year pay freeze, the closure of the company’s defined benefits pension scheme to new starters, the introduction of a three shift working rota, 24-hour production and manufacturing 51 weeks a year.

“We hope this is a win-win situation for the company and our employees – I didn’t want to disadvantage them (the employees) any more than they are experiencing in this economic environment.”

He said: “The aim is to really sweat the plant really hard –  the minimum volume will be 160,000 units and in the first year that we launch the third shift we’ll produce 185,000 units.”

Ellesmere Port will be the lead plant for the new Astra. It will build a five door hatchback model and either an estate version or three-foor version.

Crucial to the investment programme is the used of UK-sourced components. Currently this is just 10%, but with government investment in the supply chain will be hiked to 25%

Mr Millward said the investment by the manufacturer would help create around 3,000 jobs in the UK supply chain.

Duncan Aldred, Vauxhall’s managing director of Vauxhall, said the Government‘s industrial strategy, with its increasing focus on manufacturing, is “creating ideal ground for companies to build up long term investments.”

Business and industry groups welcomed the announcement, which safeguards 2,100 staff, around 500 contractors and many more in the supply chain.

Cheshire-based small business pressure group Forum of Private Business said General Motors’ decision is “fantastic news for the region as well as the UK car industry as a whole,.”

Policy adviser Phil McCabe said: ““This is keystone decision for those small businesses involved in the UK car making industry, particularly as it was looking likely until only recently that Ellesmere Port was under threat.

“Its closure would have reverberated right down the supply chain in terms of job losses so the marvellous news is a real cause for both relief and celebration.”

Katja Hall,from CBI added: “Britain’s automotive industry is now a real success story – for the first time in decades our balance of trade in cars is positive, and major investments like this are a vote of confidence in the UK.”

Simon Griffifths, area director at the Manufacturing Advisory Service said: “It is yet another example of foreign owners investing in UK manufacturing and this doesn’t happen by accident.

“Ellesmere Port is one of the most efficient and competitive plants in the world, it boasts a strong supply chain and, importantly, the Government has worked tirelessly to convince GM that Merseyside is the right place to build the next Astra.

“The latest figures from the SMMT also show a 9.3% increase in car manufacturing in April, which is 11.8% up over the first four months of the year.  Everything is pointing to sustained growth in the UK automotive sector.”

Vauxhall’s parent company General Motors saw its European division make losses of $700m last year and speculation was rife that Ellesmere Port would close in 2014 as part of a cost savings drive.