Vauxhall’s Ellesmere Port factory may close 1

Vauxhall owners, General Motor’s owners are suffering great losses in the European region. This could lead to the closure of the Vauxhall Ellesmere Port Factory.

There is a stark contrast between the Jaguar Land Rover plant based in Halewood, with both companies recording a difference of a staggering £1 billion. Jaguar managed to register profits of £559 million in the last three months of last year. Opel and Vauxhall combined recorded a poor £355 million loss. It is now no wonder that General Motors are considering closing the famous Ellesmere Port factory down. Opel’s Bochum plant may also close in 2014.

The Range Rover Evoque

The Range Rover Evoque has a lot to do with Jaguar Land Rover’s recent success. The car, produced in the companies Halewood factory reached record sales figures last year.

Dan Ammann, the General Motors Chief financial officer has described the losses as completely unacceptable.

A great factory for the UK automotive industry

To lose such an effective and productive car factory would come as a great shame to the UK automotive industry. Since the automotive recession, it has been one of the main leaders for car production. If Vauxhall are making such great losses, it would appear that none of that matters.

Poor results over the European market

The current Euro Zone crisis is clearly having a major effect on the European car market. The overall car industry has recently reported poor sales results.

In January of this year car sales were down by 7.1 %. Sales in Portugal fell by 47.4 %, sales in France were down by 20.7 %, sales in Italy were down by 16.9 % and sales in Greece were down by 13.3 %. Everything is expected to get worse before it can get better.

With Opel and Vauxhall having dedicated sales mainly with the European region, it is difficult for the both companies to reach positive sales. Losses have been occurring within the Europe for more than a decade.

The UK British Government has expressed their dismay. Closure of the Vauxhall Ellesmere Port factory will mean a loss of 2,100 staff. The UK automotive industry could lose 187,000 vehicles in production. Opel’s Bochum site in Germany may lose a total of 160,000 vehicles and 3,100 staff.

It seems as if General Motors may give in to calls to end the Opel and Vauxhall brand as they continue to make tremendous losses.