GM to axe 10,000 Vauxhall-Opel jobs

The company said on Wednesday night that jobs will have to go after the announcement that the car giant had decided to scrap plans to sell the brands to Canadian car parts firm Magna.

Union leaders responded to the latest development by saying redundancies were inevitable but pledged to work towards minimising the impact on Vauxhall's UK workforce, which are largely based in Ellesmere Port and Luton.

In a Q&A session with journalists, John Smith, GM's group vice president, said: "Our plans envisaged a headcount reduction of roughly 10,000 people."

But he did not give details as to how this would relate to individual countries or plants.

Tony Woodley, joint general secretary of Unite, said in response: "I have no doubt that whoever the owner would be, there will be major restructuring of GM operations. Inevitably some will go in the UK, but our task is to minimise the number of jobs lost and ensure that those who do go, go voluntarily."

Tuesday's announcement that Vauxhall and Opel are to be retained by GM was greeted by cautious optimism among some of the 5,500 workers employed by Vauxhall in the UK but it sparked anger in Germany.

Analysts predict that two German plants could now close, with the loss of thousands of jobs, as a result of GM's decision. Workers across Europe were concerned that Magna's takeover would give an unfair advantage to Opel's vast workforce in Germany, as their government was willing to give loans worth £4 billion.

German workers will begin walk-outs on Thursday in protest at GM's decision, while the German Government denounced the car giant's behaviour as "totally unacceptable".

Business Secretary Lord Mandelson said the decision was a "major U-turn", adding: "I am keen for very early discussions with GM over their plans for the business and how they will affect British plants and workers. I have always said that if the right long-term sustainable solution is identified, then the Government would be willing to support this."