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Decision on future of Vauxhall's Ellesmere Port factory delayed Decision on future of Vauxhall's Ellesmere Port factory delayed
(40 minutes later)
A decision on Vauxhall's closure-threatened Ellesmere Port factory has been pushed back to at least next month. General Motors has confirmed that the fate of 2,100 employees at the Wirral site will not be decided at a board meeting on Wednesday.A decision on Vauxhall's closure-threatened Ellesmere Port factory has been pushed back to at least next month. General Motors has confirmed that the fate of 2,100 employees at the Wirral site will not be decided at a board meeting on Wednesday.
A spokeswoman for Opel/Vauxhall, GM's European arm, said a meeting of the unit's supervisory board in Germany would not mull the factory closures. A spokeswoman for Opel/Vauxhall, GM's European arm, said a meeting of the unit's supervisory board in Germany would not discuss the factory closures.
Sources close to high-level discussions between GM, politicians and trade unions about the future of Ellesmere Port and a sister plant in Bochum, Germany – the most seriously threatened sites – had identified the 28 March meeting as a crucial gathering, but decisions on capacity reductions now appear to have been delayed.Sources close to high-level discussions between GM, politicians and trade unions about the future of Ellesmere Port and a sister plant in Bochum, Germany – the most seriously threatened sites – had identified the 28 March meeting as a crucial gathering, but decisions on capacity reductions now appear to have been delayed.
"The subject of plant closures is not on the agenda," said a Vauxhall spokeswoman. However, sources close to the ongoing discussions said they expected the supervisory board to confirm that GM's European operations are 400,000 units over capacity – the equivalent of two factories. The undecided issue is no longer whether GM has a manufacturing supply problem, but how to deal with it."The subject of plant closures is not on the agenda," said a Vauxhall spokeswoman. However, sources close to the ongoing discussions said they expected the supervisory board to confirm that GM's European operations are 400,000 units over capacity – the equivalent of two factories. The undecided issue is no longer whether GM has a manufacturing supply problem, but how to deal with it.
The delay has also taken place against the backdrop of vociferous campaigning against the threat of an Opel plant closure in Bochum, in Germany's western industrial heartlands.The delay has also taken place against the backdrop of vociferous campaigning against the threat of an Opel plant closure in Bochum, in Germany's western industrial heartlands.
Employees represented by the Opel Bochum Works Council and IG Metall, a major trade union, have publicly warned GM that closing the plant will be prohibitively expensive and will damage the Opel brand, turning its market share in Germany "to dust".Employees represented by the Opel Bochum Works Council and IG Metall, a major trade union, have publicly warned GM that closing the plant will be prohibitively expensive and will damage the Opel brand, turning its market share in Germany "to dust".
Employees and union officials say the plant is the biggest single employer in the Bochum region and its closure will threaten a further 45,000 jobs in secondary industries. Like Ellesmere Port, the plant marks its 50th birthday this year. It is also receiving backing from politicians, with a representative from the local government expected to attend a workers' gathering on Saturday.Employees and union officials say the plant is the biggest single employer in the Bochum region and its closure will threaten a further 45,000 jobs in secondary industries. Like Ellesmere Port, the plant marks its 50th birthday this year. It is also receiving backing from politicians, with a representative from the local government expected to attend a workers' gathering on Saturday.
David Bailey, a professor at Coventry University and car industry commentator, said the UK government might have to follow Germany's example. "Despite the odds stacked against them, everyone from unions to the regional government is mobilising and attempting to make it as difficult as possible for General Motors."David Bailey, a professor at Coventry University and car industry commentator, said the UK government might have to follow Germany's example. "Despite the odds stacked against them, everyone from unions to the regional government is mobilising and attempting to make it as difficult as possible for General Motors."