General Motors Europe has hinted at the possible closure of its light commercial vehicle (LCV) plant in Portugal.
Go deeper with GlobalData
In a statement on Tuesday, GM said it had concluded a study of its LCV business, intended “to identify cost and revenue improvements to support the company’s ongoing plan to return to sustained profitability” and found a “EUR500 cost disadvantage per unit [at the Azambuja plant] when compared to other possible production locations”.
The plant builds the Opel Corsa-based Combo light van. The current Corsa hatchback line, on which the van line is based, will be replaced by a fully redesigned range later this year after its world debut at the London motor show in July. According to just-auto’s Production Life Data Base (PLDB), the Combo will remain in production until 2007, suggesting that GM could be considering closing the Portugese plant then.
GME officials could not immediately be reached for comment.
In its statement, the automaker said it would work with workers’ representatives “to explore possible solutions” and expects to conclude discussions in the middle of June.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“We are facing fiercer competition and must continually improve our productivity in the western European car plants in order to reduce our operating costs and to secure the future of the business. Together with our labour representatives we will search for options to make the plant competitive in today’s environment,” General Motors Europe president said in the statement.
GM Europe vice president manufacturing Eric Stevens added: “I recognise the Azambuja team’s efforts to increase their competitiveness in a tough environment. Unfortunately, not every element of manufacturing cost is within their direct control.
“We will focus our efforts in the coming weeks to address other structural issues with the appropriate stakeholders to determine the best course of action – and as always, we will keep our workforce informed first.”
GME on 17 May announced it would axe the third shift at its UK Astra passenger car plant in Ellesmere Port near Liverpool in northwest England.
Vauxhall spokesman David Crundwell told just-auto at the time that the move would reduce the plant’s capacity by about 60,000 units from the 188,000 vehicles built last year.
Noting that around 900 employees are likely to lose their jobs [from a total workforce of around 3,000], GME said in a statement: “This move reflects the ongoing pressure in the automotive sector to increase productivity and to reduce cost.”
