More jobs to go at Vauxhall

Car giant Vauxhall is to shed 154 administrative jobs in the UK on top of previously announced cuts at one of its manufacturing plants, it was learned today.

Chief executive Nick Reilly confirmed that 369 jobs will be cut at the Luton factory, which produces vans, while 154 sales and admin roles will be axed.

No jobs will be lost at the Ellesmere Port factory on Merseyside.

Van production will continue at Luton until 2013, while new business opportunities are under investigation, said Vauxhall.

A third shift is being added next year at Ellesmere Port, where the Astra is being produced, with no planned reductions in the workforce, Mr Reilly repeated.

He said the business plan for Opel/Vauxhall foresees the carmaker breaking even by next year and being in profit by 2012.

The firm will reduce its capacity by around 20%, which will lead to 8,300 jobs being lost across Europe, including 2,377 in Antwerp and 900 in Spain.

Almost 1,800 jobs will be axed in Bochum, 860 in Russelsheim, 300 in Kaiserslautern, and 300 in Eisenach, all in Germany.

The job cuts will be spread across Europe and will include 1,300 in sales and admin and 7,000 in manufacturing, taking into account the previously announced closure of the plant in Antwerp, Belgium.

Mr Reilly said the company had stopped the former GM Europe management structure in Zurich, Switzerland, switching it to the former Opel brand headquarters in Russelsheim, Germany.

Mr Reilly unveiled an "ambitious" 11 billion euro plan to "reinvigorate" the firm, adding: "We now have a road map, we know where we are headed and we are working with all our partners so we can switch into high gear for a successful future.

"Opel/Vauxhall has a clear vision: to be a leading European manufacturer of high-quality, desirable automotive products, based on German engineering, driven by a united team of professionals and respected around the world.

"This vision will be realised by offering an exciting and expanded product portfolio based on a strategic push into alternative propulsion technology.

"Today's announcement marks the beginning of a new era for Opel/Vauxhall. It is the biggest overhaul in the company's recent history.

"We now have all the necessary ingredients for a successful future in place - a motivated workforce, a new and accountable company culture, a product offensive based on innovative and highly fuel-efficient technology, a competitive cost structure based on conservative volume assumptions, a dedicated management team operating out of our Russelsheim headquarters, and the support from so many stakeholders.

"Now it is up to us to prove that we can do it. I am confident that we will."

Mr Reilly said the company planned to launch a range of new "green" products including an extended-range electric vehicle and battery-electric vehicles in smaller-size segments.