Vauxhall owner axes 12,000 jobs

Click to follow
The Independent Online

The UK is expected to escape being badly hit by 12,000 job losses announced by Vauxhall cars owner General Motors today.

The UK is expected to escape being badly hit by 12,000 job losses announced by Vauxhall cars owner General Motors today.

The company said it wanted to reduce its annual costs by 500 million euros by 2006, leading to 12,000 job cuts, mainly next year.

Germany will be be hardest hit by the cuts, with a "heavy emphasis" on manufacturing and engineering.

Vauxhall employs around 5,000 workers at its plant in Ellesmere Port while GM has over 2,000 employees producing vans in Luton.

No significant job losses are expected in the UK as a result of today's announcement, although the company would make no official comment about any impact in the UK.

"GM Europe has undergone significant change and restructuring in the last three years with the support of both our workers and the respective works councils," said Fritz Henderson, chairman of General Motors Europe.

"We anticipate working constructively with the works councils to arrive at a creative solution to our current challenge."

GM said the outlook in the European car market included sluggish growth and increasing competition from European and Asian brands.

Comments