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Vauxhall job losses still inevitable despite General Motors decision

Source: The Guardian

Nov 04, 2009

Summary

• GM pulled out of a deal protecting German jobs
• Restructuring still likely due to 30% overcapacity

The British car industry was warned tonight that significant restructuring was still inevitable at Vauxhall plants despite union delight over General Motors' decision not to sell its European operation.

GM's surprise announcement that it was pulling out of the deal with Canadian firm Magna has stunned the industry. The German government, which pledged billions of euros to Magna in return for protecting jobs at Opel's four factories across the country, called GM's decision "totally unacceptable". Opel workers in Germany, who now fear that they will suffer deeper cuts, have threatened strike action.

Professor Baback Yazdani, a former Jaguar executive and now dean of Nottingham Business School, said it would be unwise to believe that GM's Vauxhall factories at Ellesmere Port and Luton were totally safe. "It is not like that. It is understandable that there is relief that a new owner is not coming in but there will have to be a restructuring in Europe whoever is in c

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