GM Announces $89 Million Investment In Its Vauxhall/UK Manufacturing

[Ming]

VAUXHALL/GM Announces $89 Million Investment In Its UK Manufacturing
www.autointell-news.com



In Luton, Vauxhall is to invest £32 million in its Vectra car plant for efficiency and productivity gains, and its sister plant IBC Vehicles will invest £130 million to become a dedicated commercial vehicle plant to produce medium vans for Vauxhall, Opel and Renault. In Ellesmere Port, where Astra, Astravan and V6 engines are already produced, Vauxhall will invest a further £27 million to transfer production of the Frontera 4x4 Off Roader from IBC Vehicles where it is currently produced.

LUTON - Nick Reilly, chairman and managing director of Vauxhall Motors Ltd., and chairman of IBC Vehicles, today announced a series of investment and plant changes to GM's manufacturing profile in the UK.

"These moves are a significant announcement for our manufacturing operations here in the UK," said Mr. Reilly. "The investment is necessary to prepare us for new products and to improve further our productivity and cost competitiveness. "When all the changes to our production operations are in place, we will be offering our UK customers the widest range ever of UK produced vehicles. "These investments give us the potential to increase shifts, if the market demands, at both the Ellesmere Port and Luton plants. IBC is planned to move to three shifts in mid 2001. "While nothing is ever guaranteed, the greater productivity achieved by these changes obviously helps the prospect of maintaining employment in the future. "We have worked hard to control our costs in recent years and this investment is both a reward for those efforts and a boost to further cost improvements. "The introduction of the new van, the reorganisation of the Vectra plant ahead of the next generation car, and the transfer of the Frontera, will provide us all with a tremendous challenge over the next 18 months - one to which we all look forward. "Despite the very high level of the pound which continues to put a substantial strain on our manufacturing business, the UK continues to be a good place to manufacture and this optimism is helped by the continuing commitment and developing skills of our workforce," continued Mr. Reilly.

There will be no impact on the supply of the Frontera, Vectra or Astra to the marketplace while the changes are made at all three plants.

IBC to become dedicated van plant:
The IBC plant in Luton will cease production of the Frontera at the end of this year and will concentrate on the all-new medium van range for Europe. This van, developed in conjunction with Renault, will be launched in spring 2001, and further details will be released later this year. The new van will bring around 500 new jobs to IBC's production facility in Luton over the next 18 months. The total investment for the new van at IBC will reach around £130 million.

It is forecast that in excess of 80,000 vehicles will be built initially at the Luton plant for sale across Europe by both Vauxhall/Opel and Renault. The new van range has been developed with Renault as part of an agreement with General Motors Europe signed in 1996. This agreement has already strengthened the positions of both companies in the European medium and heavy van market.

Full Article: http://www.autointell-news.com/news-...y-09-00-p4.htm

[V-Car]

Ming, isnt that news 5 years old?
Press release from May 9, 2000.

[Ming]

Oops - don't know how I missed that. Thx.

[yoblues]

Is Vauxhall sold anywhere else other than the U.K. now? They were sold in the USA once apon a time because my father actually owned one. He was the experimental type.

[V-Car]

Originally Posted by yoblues

Is Vauxhall sold anywhere else other than the U.K. now? They were sold in the USA once apon a time because my father actually owned one. He was the experimental type.

Vauxhall exists only in name now, all their products are just rebadged Opels today, just the same as the Opels sold in Australia are rebadged as Holdens.
EG: Holden Vectra, Astra, and Barina (Corsa)

[yoblues]

Thanks for the info. They may all be reabadges now but I think the Vauxhall design looks better than all the rest of them.

[Jesda]

Vauxhall's reputation in the UK is quite poor, though not as poor as Korean (Hyundai/Kia) and Malaysian (Proton) brands. It needs a major, major overhaul.