Vauxhall says it will look to tap into UK grants after securing the lead share in the next generation Astra work for its Ellesmere Port plant in North West England.
The decision to award work to Opel’s UK division has caused huge ripples in Germany, where some elements have suggested the deal was struck following aid from the British government -a position flatly refuted by Vauxhall – but the automaker is now confirming it will apply for grants from Britain’s Regional Growth Fund (RGF) – partly funded by the European Union.
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“Some people in Germany said ‘what is this all about?’ but we have not applied for government support,” [for Astra] Vauxhall managing director, Duncan Aldred, told just-auto on the sidelines of this week’s Automotive News Europe Congress in Monaco.
“We are now looking to take advantage of the RGFs – which are very well publicised – which is assistance manufacturing organisations can get if it meets criteria. These are pan-European subsidies, this is not specific to the UK. When the Astra was awarded to Vauxhall, we had not made applications.”
Now Vauxhall has secured the new Astra from 2015, Aldred noted the UK supply chain would start to see a ramping up of British parts supply in the vehicle.
The UK government has been trumpeting the success of the domestic supply chain as the country starts to net export models and the success of Vauxhall at Ellesmere Port means the Astra should feature far more British content than before adding to the extra 700 jobs generated by the contract.
“The key part of the Astra deal for the UK is we will ensure there is around 30% UK contenting of that vehicle versus what you see [today], which is 10%,” said Aldred.
“Many of the cars in the UK are getting 5%-10%, so there is definitely a job to do to get a stronger supply base in the UK and build it up. Not only will it [Astra] create 700 jobs in Vauxhall, it will create 3,000+ jobs in the supply chain.”
Aldred added the Astra agreement was struck following the deal with Vauxhall’s unions, who have agreed a two-year pay freeze followed by two more years of 3% wage increases.
“What underpins the agreement is it is contractual – that Ellesmere Port will get volume,” he said. “In return, you [unions] will deliver changes in working practices.
“It is a very detailed, clear agreement, there is no greyness in it. If we do not fulfil our side of that bargain, there are pre-determined remedies. We pay money back.”
