New Astra gives Vauxhall plant £125m lifeline
THE coalition’s industrial strategy has received a major boost from General Motors’ decision to invest £125m on building a new Astra in Britain at the likely expense of Germany.
Vauxhall, owned by GM, will begin assembling the next generation Astra compact at Ellesmere Port in 2015.
It will create about 700 jobs at the Vauxhall factory and another 3,000 in the supply chain and means the north-west plant, which has long faced rumours of closure, will stay open until at least 2020.
It casts doubt over the future of GM’s plant in Bochum in Germany, however. GM is expected to halt production of the Astra at its main plant in Russelsheim, making the car only at Ellesmere Port and at Gliwice in Poland from 2015. Russelsheim could take on some Chevrolet production, but no decisions have been made.
GM, which lost $747m on its European operations last year, chose Ellesmere Port after the workers accepted a new labour deal, which includes the end of the summer shutdown, a two year pay freeze and then two years of agreed pay rises.
The deal means a third production shift will be added at the Vauxhall factory, which employs 2,100 workers, to ensure 24-hour a day running, as well as the start of weekend working.
GM said production at the plant, whose sole product is the Astra, would rise to at least 160,000 cars a year from the current 140,000, with the potential to top 200,000.
“This (deal) is assisted by the government‘s industrial strategy, increasing its focus on the manufacturing sector and creating ideal ground for companies to build up long-term investments”, said Vauxhall chairman Duncan Aldred.
It represents a victory for business secretary Vince Cable who flew to New York in March to lobby GM bosses.