Vauxhall has boosted its UK supply chain and has awarded contracts to domestic suppliers worth over EUR230m over the past 18 months.

Bill Parfitt, chairman of GM UK and Vauxhall Motors – and also the first chairman of the country’s Automotive Council’s Supply Group Suppliers – said UK suppliers have been awarded contracts on the basis of quality, service, technology and price, supplying to the company’s two British plants in Ellesmere Port, Cheshire, and Luton, Bedfordshire, as well as export to GM divisions across the world.

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Parfitt said: “Vauxhall is keen to build on the momentum and push for new business with UK suppliers to the benefit of local economies and GM globally who are now increasingly aware of the great potential that resides in the UK.”

One example is Cobra UK which has won a number of contracts to supply a number of GM plants around the world from its base in Wales. From next year the supplier is scheduled to produce components for Vauxhall’s Ellesmere Port plant which builds the Astra Sports Tourer for the whole of Europe.

Vauxhall managing director Duncan Aldred said he is also looking to increase content from UK-based suppliers further. “We have already increased our sourcing from domestic suppliers over the next four years and with the next generation Astra I see further opportunities because this will give us some natural currency hedging.

“The UK seemed to give up on its supply chain a few years ago and we need to get that back. We need government help to do that and that means encouraging people into engineering from an early age.”

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GM’s UK business is also still hopeful of winning the bid to assemble the Ampera range-extended model for European markets.

Aldred said: “We are still a long way from a decision to build Ampera in Europe, let alone Ellesmere Port, although we do have a strong case. It is a very productive plant, low cost and efficient and it has the right platform. There is unlikely to be any decision before the next generation model and not before 2015, there is still a lot of capacity at the plant in the US – but we will be pitching very hard.

“Ellesmere Port is ready and waiting if and when a decision is made. We have a very efficient plant and labour force. We have reduced costs at the plant by 20% over the past two years.”