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Discussion Starter · #1 ·
General Motors to shut British engine factory
David Gow
Saturday April 10, 2004
The Guardian

General Motors is to close its sole engine plant in Britain at Ellesmere Port, Cheshire, and transfer production to North America in a fresh blow to Britain's manufacturing base, it emerged yesterday.

The plant, part of a joint Powertrain venture with Fiat, has been making engines for Vauxhall and Opel, the British and German GM brands, but output has been slashed to 60,000 a year recently.

A GM Europe spokesman confirmed that the plant would cease making engines for the Vectra and Sigma models in July but said the 175 employees would be transfered to the assembly line at the nearby car factory.

Officials at Amicus, the engineering union, said: "We are dismayed that these are highly skilled manufacturing jobs that are yet again leaving the UK."

The GMB union calculates that Britain is losing 300 manufacturing jobs a day.

Both Amicus and the TGWU welcomed Vauxhall's decision to take on the remaining staff at the car plant, which is gearing up for the May 1 launch of the re-engineered Astra.

GM has secured 60,000 advance orders for the new Astra - the "make or break" car for the loss-making division - which, because of the euro's strength, is unlikely to reach its target of $100m (£54m) profits this year.

The TGWU pointed out that Ford, BMW and Toyota had invested heavily in British engine plants while GM, which closed its Luton car plant three years ago, was disinvesting and focusing on a new joint venture with Honda.

But GM officials said orders for the V6 engine had run out. It used to make engines for Cadillac and Saturn but the number of shifts has been cut from three at the peak of output to one.

Full Article Here



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Discussion Starter · #8 ·
There must be a monetary benefit to building the outdated 3.4L engine in China - the Mexican made redesigned 3.5L version that will be used or is already used in every other new GM product must be more expensive.

If not, there is some seriously twisted logic at work.
 
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