VAUXHALL in Ellesmere Port has been working flat out to meet demand for the new Astra Sports Tourer.
American owner General Motors expects its European arm to break even this year.
The US auto group went into administration in 2009 but opted to retain GM Europe, including its Ellesmere Port Vauxhall Astra plant, rather than dispose of it in a cost cutting drive.
It came out of bankruptcy protection and returned to the stock market last November, and first-quarter results released last week by GM showed a more than tripling of profits for the group, and a continuing trend of falling losses in Europe which should lead to break even by the year end, it said.
GME’s results improved by £363m on an earnings before interest and tax-adjusted (EBIT) basis, compared with the same quarter last year, and the group said it achieved a ‘significant milestone’ by delivering break-even results on that basis.
Ellesmere Port employs 2,000 staff producing the Astra and Astra Sports Tourer models, and GME president Nick Reilly said last week: “Ellesmere Port is doing very well and working flat out to meet demand for the Sports Tourer, which is going extremely well.”
He added that a new three-door hatchback Astra will be produced later this year in Europe and said, depending on its success, it could drive up demand for Ellesmere Port’s five-door version.
Group net first-quarter income rose to about £1.94bn, against £545m the year earlier, making it GM’s fifth consecutive profitable quarter.
Total revenues rose to about £22bn from £19bn last year. Analysts had expected £21.56bn.
