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GM plans to axe jobs at Vauxhall

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01 December 2009 at 11:14

Around 354 people are likely to lose their jobs at General Motors's Vauxhall plant, as the car maker plans to overhaul its European operations.

The manufacturer said that it will discuss the redundancies with the 1,500 workers at the factory in Luton.

The firm said in a statement: "The GM manufacturing facility in Luton has now begun its own period of consultation between unions and local GM management."

It added that the number of layoffs at the plant, that builds vans for Opel, Vauxhall, Nissan and Renault, was subject to "further local consultation."

The struggling car maker said that it needs euro3.3 billion (£3 billion) to restructure its European operations, and it could face about 9,000 job cuts Europe-wide as it attempts to reduce output by about 20%.

Earlier, there were plans to increase the number of shifts at its Vauxhall plant in Ellesmere Port, England, and the company confirmed that it will not be cutting any of its staff there.

However in the beginning of this month, GM abruptly cancelled the planned sale of a majority in Opel to a consortium of Canadian auto parts maker Magna International and Russian lender Sberbank.

Copyright © Press Association 2009

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