London, Nov 27 (PRINTWORDS NEWS) For the past few months UK based Auto Major Vauxhall has been going through a rough phase. The future of its workers was put to uncertainty after its parent, US based GM, announced the possibility of job cuts in Vauxhall’s two UK based production plants. This made the workers worried. However, Nick Reilly, the Chief Executive of GM Europe talked with the representatives of British Government to aid the automaker and find a solution. The Vauxhall employees were delighted when Reilly recently assured that no layoff will occur at its Ellesmere Port plant. On the contrary, the plant will soon start production in three phases.
This comes as a much needed breather for the UK automotive industry. GM plans to lay off a majority of its workforce in Germany. Reilly admitted that the company will have to cut 9000 jobs to cut down costs and avoid incurring huge losses. As of now, GM is trying to pay back the money it owes to the US government that came to its aid during bankruptcy filing.
GM tried to sell off its European operations earlier but the deals could not materialize. It also had to back out of the deal with Magna as the deal would have resulted in massive layoff in the UK plants of Vauxhall. However, GM is yet to decide its next course of action regarding the production plant at Luton. Despite the success of its new models like the Astra and Insignia GM Europe expects a production deficit of 20 percent.
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