Car workers return to uncertainty

12 April 2012

Thousands of employees at motor giant Vauxhall are returning to work after a week-long shutdown, with a huge question mark hanging over their future.

Union leaders are to step up demands for the Government to help secure the jobs of 5,500 workers at the Vauxhall car plant in Ellesmere Port, Merseyside, and the van factory in Luton, Bedfordshire.

The continued uncertainty over British jobs came as Vauxhall owner General Motors made final preparations for bankruptcy protection in the United States.

GM's European arm is set to be spared bankruptcy following a proposed deal by Canadian car parts maker Magna International to buy the Vauxhall and Opel brands.

Business Secretary Lord Mandelson said he had received assurance from GM Europe that Vauxhall production would remain in the UK. But although Magna's bosses had given a commitment to continue Vauxhall production in the UK, he told BBC1's Politics Show they had given no details on how long or whether job losses would follow.

"We will have to see as Magna itself becomes more specific what the implications are," Lord Mandelson said. "But one thing I can say is this - we have in Ellesmere Port and Luton very good plants, a first-rate workforce, high productivity."

Speaking later to BBC Radio 4's The World This Weekend, the Business Secretary said neither German nor Polish plants were ready to take over production of Vauxhall's Astra model from the British factories.

Asked whether either Ellesmere Port or Luton would be closed, he said: "I can't say that, because I don't know what their plans are. And the reasons that I don't know their plans is because they haven't drawn them up yet."

The minister is expected to have urgent talks in the coming days with Magna officials as part of his efforts to help secure the future of Vauxhall's UK factories.

Meanwhile, thousands of car workers are resuming production at the Honda factory in Swindon after a four-month lay-off. But they are returning for lower wages and will be producing far fewer cars this year.

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