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GM plans fewer job cuts for Vauxhall

Written By Faye Sunderland Published On: Nov 18 2009
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Reassurances for Vauxhall staff have been circulating the press after a meeting between General Motor’s head of operations; Nick Reilly met Business Secretary Lord Mandelson and union Unite earlier this week.According to the BBC, it is the first face-to-face meeting between GM executives and UK ministers since GM decided to retain Opel, which includes the Vauxhall brand, earlier this month.Mr Reilly told the broadcaster there may be a chance to "quite significantly" reduce the 800 job cuts previously expected.Canadian auto parts manufacturer, Magna, which had intended to purchase Opel had originally estimated job losses in the UK at around 800 as part of its takeover plan.However after GM decided not to sell the European brands Opel and Vauxhall, Mr Mandelson has been keen to gain assurances from the US giant over Vauxhall jobs in the UK. Currently Vauxhall employs around 5,500 people in its Ellesmere Port and Luton plants.GM needs to reduce costs and restructure Opel and Vauxhall to ensure future profitability after the US car giant collapsed into bankruptcy earlier this year. After a major bailout from the US government, GM recovered and emerged from bankruptcy protection and in November decided it did not need to sell the European brands thanks to an ‘improved business environment’.

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