UK Vauxhall plant 'vulnerable'

Vauxhall’s “Home of the Astra” looked under threat today after General Motor’s European boss admitted it could be vulnerable in the battle to attract new models.

A report in the Sunday Times said that the future of the Vauxhall factory at Ellesmere Port, Merseyside, was in question.

The plant – one of Britain’s largest car makers which employs 3,300 staff - smashed production records last year by making 188,000 cars, 20,000 more than in 2000.

The Astra is one of the UK’s best selling cars but it is also made at two sites in Germany, Antwerp in Belgium and Trollhatten in Sweden.

According to reports, GM is only considering four of the five sites to build a new mid-sized model of the Astra. It is thought that labour costs at Ellesmere Port make it vulnerable.

GM and Vauxhall played down the threat and said that all the group’s European plants had to remain competitive to ensure their future.

It followed remarks by GM Europe chairman Carl-Peter Forster at last week’s Detroit Motor Show, where he told the Sunday Times that Ellesmere Port was vulnerable because of high wage costs.