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CAR NEWS - Jan 2007

new Astra car palnt

Government Offers Aid to Vauxhall, Ellesmere Port
Government aid is being offere to Vauxhall's Ellesmere Port plant in a bid to secure a deal to make the new Vauxhall Astra there. Around 900 workers were told last May that they faced job losses there but the new car development holds out hope of securing the future of the plant.

Ministers Gordon Brown and Alistair Darling have visited the plant so are seen to be firmly nailing their colours and reputations to this bid. Management report that other European new car making plants are also in the frame for the deal which could run for 10 years. The company are looking to compete internationally with low cost labour and the work to be done at the plant should increase efficiency.

Other plants being considered for production of the new Astra are in Poland (a favourite for part of the deal owing to cheap labour costs), Germany, Belgium & Sweden. Three contracts are to be awarded amongst the five contenders. Work should begin on the car in 2009.

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