Vince Cable calls for Ellesmere Port Plant to stay open 0

It is one of our most iconic car factories in the UK. General Motors have considered closing the Vauxhall Ellesmere factory in an attempt to reduce car capacity as European operations are currently making a huge loss.

Vince Cable has called for General Motors to make a long term commitment to the future of Vauxhall rather than making a drastic decision.

Loss of 2,800 jobs

If the Ellesmere facility was to be closed, it would be a devastating loss for the UK automotive industry. It is one of the most productive car factories in the UK. There would be a loss of 2,800 jobs and thousands of indirect lost jobs.

Mr Cable meeting executives personally

Mr Cable spoke to a General Motors executive as a deal was secured between them and Peugeot Citroen. He has urged the company to follow suit from the likes Nissan, BMW and Jaguar Land Rover by having faith in the UK automotive industry and investing millions. Mr Cable was so keen for this to happen that he flew out to New York himself in order for a deal to happen.

Has the decision already been made?

This move may prove to not have an effect on the fate of the Ellesmere factory. Advanced talks have apparently already occurred and the plant may close soon. This will be in concurrence with General Motors attempting to stop losses being made in Europe and cut back on capacity within the region. The company would like to reduce capacity by 400,000 which equates to two factories. Something has to give.

Vauxhall’s Bochum factory in Germany may close too, again brining about the loss of thousands of jobs.

General Motors European losses

Despite General Motors becoming the world’s number one car producer last year, they lost $747 million in profit. This was halved when comparing the figures of 2010 but was no where the break even mark which General Motors had previously desired.

1.4 million Cars are produced every year from Vauxhall and Opel. Losses of last year mean that production will have to cut from that figure. It is up to General Motors and Peugeot Citroen to deal with their individual overcapacity in the way they see as the most effective. Unfortunately closure of the Ellesmere factory appears to be like the most likely course of action at the moment.