17/05/2012

GM Save Vauxhall Car Plant

General Motors will confirm this morning the survival of the Ellesmere Port car plant, which will become the new production home of it’s new Astra model.

The move follows staff at the car company voting by 94% in favour of a new pay and conditions deal, clearing the way for investment in the Ellesmere Port plant.

It was feared the plant could close as part of a wider restructuring of GM's European operations.

Vince Cable, the Business Secretary, told the BBC that no financial inducements were offered to GM.

GM's investment will also mean hundreds more jobs will be created at the plant as it moves from two shifts to three.

Mr Cable described the Astra news as "a good story" and said it underlined that the UK was "a good business environment for the motor industry".

Unite general secretary Len McCluskey said: "From a position of uncertainty earlier this year, there is now a potential for a future at the plant until 2020 and beyond, and with that 700 new skilled jobs at Ellesmere Port itself, and possibly hundreds more in the supply chain.

"Importantly this move will also bring component supplier plants back into the UK, a development that strengthens our manufacturing base generally."

However, he said he recognised that Ellesmere Port's good news could spell bad news for other GM operations in Europe.

(H)


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