Latest Car News From DIGIADS

Latest Car News

New Car Review Areas

General Car Topics

Astra Shift Reduction Planned at GM's Ellesmere Port Plant


May 2006
 Filed under: GENERAL MOTORS CORPORATE Car News | GENERAL MOTORS CORPORATE Headlines
Ellesmere Port/UK( 2006-05-17) -- Today, management of General Motors Europe discussed with the trade unions the company’s intention to adjust the current production capacity of its Ellesmere Port plant, by reducing from three- to two-shift operation. This move reflects the ongoing pressure in the automotive sector to increase productivity and to reduce cost. Such moves are necessary to be competitive and to enable the industry to retain production in Western Europe. It is also triggered by the expected development in demand across Europe for production of Ellesmere Port’s Astra. This will potentially affect approximately 900 employees at Ellesmere Port.
* GM Management begins formal consultation with trade unions
* Shift reduction planned to be achieved through planned voluntary package
* Actions will have positive effect on the plant’s competitiveness

“GM continually monitors the competitive environment, the marketplace and the performance of its products across our global markets”, said Carl-Peter Forster, GME President. “Our industry simply cannot afford to stop continually improving productivity in its Western European car plants. This is essential to compensate the higher cost base in Western Europe and to secure the future given today’s competitive environment. Based on current operating costs and current product life cycle projections, the reduction of a shift at the Ellesmere Port plant will be the most cost-efficient approach to attaining necessary reductions in output. Together with our labor representatives, we have searched for alternatives, but there is no viable alternative. The shift reduction will help increase the efficiency of the Ellesmere Port plant. It is something that works to meet current capacity projections, and not something we expect to see repeated at Ellesmere Port in the current Astra’s lifecycle, nor is it an indicator of future product allocation decisions.”

This adjustment is expected to become effective following the summer shutdown in August. It will be implemented in line with existing agreements that have been established with the trade unions.

Jon Browning, Chairman of Vauxhall and GME Vice President Sales, Marketing and Aftersales said, “We will of course work together with our labor representatives to achieve a socially-responsible solution for the affected employees. The company’s plan is to offer a voluntary package that allows us to avoid forced redundancies. For the people at Ellesmere Port, this is by no means indicative of a lack of progress made locally over the past several years. Indeed there has been much progress. Quality and productivity have shown significant improvements, but the issue of long-term competitiveness remains. We need to address this. This move will have positive effects on the cost structure of the plant. With more than 100 years of history behind it, Vauxhall is a very important brand for our company. We remain convinced that a manufacturing presence in the UK is desirable. We remain committed to working with the trade unions, government and all other partners to enable Ellesmere Port to have a strong and vibrant future.”

Today’s announcement has no impact on the new Astravan, produced exclusively at Ellesmere Port for export across Europe.

General Motors Corp. (NYSE: GM), the world’s largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. It has manufacturing operations in 33 countries and its vehicles are sold in 200 countries. In 2005, GM sold 9.17 million cars and trucks globally, up two percent and the second-highest total in the company’s history. In Europe, GM sells its Opel, Vauxhall, Saab, Chevrolet, Cadillac, Corvette and Hummer ranges in over 30 markets. It operates 11 production and assembly facilities in eight countries and employs around 64,500 people. GM operates one of the world’s leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. More information on GM can be found at http://media.gmeurope.com and http://www.gmeurope.com .

Source: General Motors Corp.

Latest GENERAL MOTORS CORPORATE Headlines

Latest Car News

All images courtesy of and copyright their respective manufacturers, unless otherwise indicated. They may not be reproduced or retransmitted in any way without the express written permission of their respective owners. All trademarks are the property of their respective owners. Model news and specifications are presented as provided by manufacturer, and do not necessarily reflect the opinions of DIGIADS. No warranty is made by DIGIADS with respect to the accuracy or timeliness of the information contained herein.
Copyright © 2000-2025 DIGIADS Australia All Rights Reserved. Contact Us
Designated trademarks and brands are the property of their respective owners. Use of this Web site constitutes acceptance of the DIGIADS Privacy Policy and User Agreement. 		Loading...