Vauxhall commits to UK manufacturing at Ellesmere Port as UK car production rises
Fri 18 May 2012
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Vauxhall has made a commitment to invest £125 million to continue manufacturing at its Ellesmere Port plant in Cheshire, creating 700 new jobs. The next generation Astra will be produced at the plant which, reports suggest, is now also favourite to produce the extended range electric Ampera. In a further boost for the UK automotive industry, the SMMT reports that UK car production was up 10% in April, boosted by strong demand for exports.
A decision on building the second-generation Ampera, the extended-range electric car is expected when GM has seen the extent of Ampera sales in Europe. GM is reported to be planning to start building electric cars in Europe in 2015-16 and the Cheshire plant starts with two significant advantages. First, it builds the Astra, which shares the same platform as the Ampera. Second, Vauxhall has been able to demonstrate to GM that the workforce is highly skilled and able to cope with extra challenges after the agreements with unions on greater flexibility.
Sales of the Ampera, which is currently built in Detroit, have been strong in Britain since the end of March. About 5,000 are expected to be sold in the UK this year – half of all European sales.
The new-generation Ampera will be tailored more for European tastes and is expected to be significantly cheaper than the present model (£28,995, including a £5,000 Government subsidy), thanks to cheaper batteries.
Vauxhall's decision to continue production at Ellesmere Port follows the conclusion of a groundbreaking new labour agreement, which was approved by the Vauxhall workforce and which comes into force in 2013 and runs through the life of the next-generation Astra, into the early 2020s.
As part of the agreement, the plant will improve flexibility and reduce fixed costs, significantly improving its competitiveness. As a consequence, the Ellesmere Port plant will become one of the most competitive in the Vauxhall/Opel manufacturing network.
Business Secretary, Vince Cable, said,“This is fantastic news and secures car production at Ellesmere Port untill at least 2020. I am delighted for Vauxhall’s exemplary workforce and management who have all worked hard to make the cost savings needed and ensure that the UK remains at the centre of GM’s operations in Europe".
Meanwhile, the SMMT reports that there were 94,352 cars produced in April, an increase of 9.3 per cent on the same month in 2011, and up by 11.8 per cent for the first four months of the year.
Almost half a million cars were built in the UK in the first four months of the year, with more than 400,000 for export.
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