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Jobs fears as car giant suffers $700 million loss

Published date: 17 February 2012 |
Published by: Hayley Collins


 

A QUESTION mark hangs over the future of thousands of jobs in the region after General Motors revealed huge losses in Europe.

The company announced yesterday it made record profits of $7.6 billion in 2011, but lost $700 million in Europe – which includes the Vauxhall plant at Ellesmere Port.

The factory, which makes the Astra Sports Tourer, the Astra five-door hatchback and the Astravan, employs 2,100 people including many from across Chester, Wrexham and Flintshire.

A company spokesman said talks were under way to discuss “strategy” at the Ellesmere Port plant.

The spokesman said: “Management, the works council and the supervisory board of Opel/Vauxhall are all in agreement that Opel/Vauxhall has to become profitable, even in times of tough economic headwinds.

“We are jointly discussing our strategy and will keep our employees and the public informed.

“Opel/Vauxhall is on a good path and thanks to our excellent model range with six new product launches in 2012, we are sure we will build on our success in the marketplace.

“It is also always good to remember our Ellesmere Port plant is one of the most productive and most efficient in Europe.

“It is running at record line rates of 47 units per hour since July 2011.

“About 93 per cent of the plant’s production is dedicated to the Astra Sports Tourer which is first in its segment in the UK and in high demand across Europe and Germany in particular.”

Delyn MP David Hanson said: “At the moment it’s all speculation.

“The factory at Ellesmere Port provides good employment for North East Wales and North West England and produces a high quality product.

“Obviously a £700 million loss is a big blow, but I’m confident in the quality of the product being made at Ellesmere Port and when the economy begins to upturn then new car sales will begin to increase.

“Hopefully they will look at this loss in the long term, rather than in the short term.”
Speaking to the Leader earlier this year Don Crank, the Unite union shop steward at the plant, admitted there was always a threat to jobs.

He said: “Over the last three or four years, we have saved £26million in this plant to try to secure our future. So far it has helped to secure jobs, but there is always that threat there.”

Following yesterday’s announcement Dan Ammann, senior vice president at GM, said the company was working hard to return Europe and South America to profitability.

He added: “Overall, we have made good progress and we have more work to do.”

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  1. Posted by: Roland Cleth at 11:00 on 17 February 2012 Report

    Interestingly, the BBC are reporting that Cobra UK is closing its factory in Powys and relocating to a new 70,000 sq ft building on Wrexham Industrial Estate after landing a £12m order with General Motors.

  2. Posted by: cynprifathro at 12:47 on 17 February 2012 Report

    In the wake of Government cuts, all North West Police forces have since opted to use cheaper Hyundai I30s as their squad cars, instead of Vauxhall Astras built at Ellesmere Port. In the next four months, Cheshire Police will have 40 Hyundai I30s operational, representing a saving of £150,000. In this context, David Hanson's comments seem rather meaningless and represent mere talk for the sake of it!

  3. Posted by: mark_buckley at 12:52 on 17 February 2012 Report

    The publisher failed to mention that GM has just liquidated Saab in Sweden - making 3892 people redundant. This probably has a lot to do with the $ loss rather than production in the UK. You only have to see the UK roads to see how much presence Vauxhall has. I still think it's shameful what GM did to SAAB and not allow Youngman to buy SAAB out. Forget your IP imagine what would happen to local people if Ellesmere Port was to shut....

  4. Posted by: Bruin_bear at 15:58 on 20 February 2012 Report

    To the Evening Leader, why was my post removed? there was no abuse or insulting text unlike others. no one at the Leader was available to comment. Or was it because I spoke the truth about GM wasting countless millions on transporting goods that could be sent through the post?

  5. Posted by: InMyOpinion at 17:07 on 20 February 2012 Report

    Bruin_bear... I think you will find it was not the leader who removed your comment... watch this one disappear as well... some dont like the truth on here.... they probably think you are me and I am you... isn't that so liberty1?

  6. Posted by: Bruin_bear at 18:01 on 20 February 2012 Report

    Whatever, I'm no longer interested in tittle tattle between idiots who cannot discuss a subject without resorting to insults or the removal of posts, quite honestly I dont think I'll bother posting on this site again,why should I waste my time with fools like you lot?

  7. Posted by: liberty1 at 19:47 on 20 February 2012 Report

    Seems that another symptom of obsessive personality disorder is paranoia to the "point of irrationality and delusion".

  8. Posted by: InMyOpinion at 21:56 on 20 February 2012 Report

    Ah well... you should not have claimed I was writing under different names... without a shed of proof...seems strange that most of those user names have not been back on though...I'm not paranoid dear chap... just observative... good to see you still have sence of purpous though.

  9. Posted by: InMyOpinion at 22:15 on 20 February 2012 Report

    Then there's the fact when Bruin_bear made a comment on cycle paths ...you made a point of using your belief that he and myself are one " no hidihg for him behind double pseudonyms"...now thats what I call paranoia... quite simply lib... you just cannot stop your antics...Idid not see the post that was removed...pity really...wish Leader would put it back up...please.

  10. Posted by: liberty1 at 22:15 on 20 February 2012 Report

    obsessive psycopath disorder, other symptoms include stalking, graving peoples attention, feeling of self importance, fantasy scenarios, multiple identities, possible violence, not being able to let go, to keep peoples attention at any cost.

  11. Posted by: InMyOpinion at 22:21 on 20 February 2012 Report

    Ah well... there you o again on another rant.... really.. grow up... anyway I'm off to Australia house tomorrow to get my visa... im going to enjoy myself for four whole weeks... and you can rant till your heart's content.

  12. Posted by: liberty1 at 20:08 on 22 February 2012 Report

    So how was your visit to AH? I have never been there myself, long queues?, must be a busy place what with the state of the UK under the Tories/Lie/Dims, lots of people wanting to emigrate to a better place no doubt.

 

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