Car plant not affected by GM job loss programme

THE Vauxhall Motors factory in Ellesmere Port is not affected by major changes affecting its parent company in America.

After suffering a sharp drop in sales in the USA, General Motors, the world's biggest car maker, wants to reduce its salaried staff costs by 20%.

It is expected 6,400 positions will go, with the axe falling largely on managerial and administrative jobs at the North American operations. GM plans to save $1.5 billion (£752m) this way.

But when asked if Vauxhall’s Ellesmere Port car manufacturing plant in North Road would bear any of the proposed job losses, a company spokeswoman said it would not.

She explained: “We in Britain are affected by some of the same things as America but all these announcements are to do with the US. Ellesmere Port is unaffected by this.”

Last month, GM’s sales in the USA fell by 18%, although they held up better than those of Ford, their main rival, which suffered a slump of 28%.

GM said it expected to sustain a “significant loss” in the second quarter after the American market had been hit by the economic downturn and the soaring price of fuel.