Following final discussions with trade unions this morning, General Motors Europe has confirmed it will axe the third shift at its Vauxhall Astra plant at Ellesmere Port near Liverpool in northwest England.
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Vauxhall spokesman David Crundwell told just-auto 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.
“Such moves are necessary to be competitive and to enable the industry to retain production in Western Europe. It is also triggered by the expected development in demand across Europe for production of Ellesmere Port’s Astra.”
The company added that the announcement has no impact on the new Astravan, which is produced exclusively at Ellesmere Port for export across Europe.
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By GlobalData“GM continually monitors the competitive environment, the marketplace and the performance of its products across our global markets”, said GME president Carl-Peter Forster in the statement. “Our industry simply cannot afford to stop continually improving productivity in its western European car plants. This is essential to compensate the higher cost base in western Europe and to secure the future given today’s competitive environment.
“Based on current operating costs and current product life cycle projections, the reduction of a shift at the Ellesmere Port plant will be the most cost-efficient approach to attaining necessary reductions in output. Together with our labour representatives, we have searched for alternatives, but there is no viable alternative.
“The shift reduction will help increase the efficiency of the Ellesmere Port plant. It is something that works to meet current capacity projections, and not something we expect to see repeated at Ellesmere Port in the current Astra’s lifecycle, nor is it an indicator of future product allocation decisions.”
GME said it would axe the third shift after the summer shutdown in August. It will be implemented in line with existing agreements that have been established with the trade unions.
Vauxhall chairman and GME vice president sales, marketing and aftersales Jon Browning, said: “The company’s plan is to offer a voluntary package that allows us to avoid forced redundancies.
“For the people at Ellesmere Port, this is by no means indicative of a lack of progress made locally over the past several years. Indeed there has been much progress. Quality and productivity have shown significant improvements, but the issue of long-term competitiveness remains. We need to address this. This move will have positive effects on the cost structure of the plant.
“We remain convinced that a manufacturing presence in the UK is desirable. We remain committed to working with the trade unions, government and all other partners to enable Ellesmere Port to have a strong and vibrant future.”
The Amicus union press office did not immediately return calls seeking comment but union general secretary Derek Simpson on Wedneday morning told the BBC the decision was “another devastating blow to the car industry and UK manufacturing in general”.
Separately, he told The Times: “Our priority now is to make sure that there are no compulsory redundancies made at the plant and we are committed to ensuring that the Astra replacement comes to Ellesmere Port to ensure a long-term future for the people that are staying,” he said.
The newspaper said both Amicus and the Transport and General Workers Union blamed “weak” UK employment laws for the job losses. Simpson said: “Britain has highly skilled workers and the most productive plants as well as the biggest market for motor vehicles. Yet UK workers are the first to be laid off because weak UK labour laws are being exploited by (international) employers.”
The move is the latest blow to car manufacturing workers in the UK. It comes barely a month after PSA said it would close the Peugeot 206 plant near Coventry next year with the loss of 2,500 jobs and a year after MG Rover folded (6,500 jobs lost). Previously, Jaguar closed a Coventry assembly plant employing 1,100.
