by René Lavanchy
CAR giant General Motors will save both its British factories but sell off other assets as part of a Europe-wide cost-cutting programme, Tribune can exclusively reveal.
The company recently announced that it would introduce a four-day week at the Vauxhall plants at Ellesmere Port and Luton, as a slump in demand saw its world sales fall by nearly 50 per cent last month.
This week GM also said it would shed 10,000 white-collar jobs worldwide.
But following discussions with the union Unite, factory managers have been told by senior executives that the plants, which together employ some 3,400 workers, will stay open.
Other factories in Europe are expected to close as a result, and GM intends to sell Swedish carmaker Saab.
A source close to discussions said that because of a planned bailout from the United States government, GM was having to “chuck some capacity in Europe. Saab is going to be sold off. There are question marks around some of the plants. Ellesmere Port and Luton will be maintained.”
The company will submit its formal business plan to the US Congress next week.
The future of the Ellesmere Port factory has also been safeguarded by GM’s decision to build the new Astra car there from later this year.
As Tribune went to press, the future of GM’s European plants was under discussion at a European works council meeting.
A Unite shop steward declined to comment on any discussions relating to closures, but said: “In my view Ellesmere Port has got a long term future.”
A GM spokesperson confirmed the British plants were “secure” but would not comment on any others.
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Whats the betting before long it will be the factories the UK is a target for getting rid of people it’s easy because New Labour has not had the guts to protect workers.