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Worry for Vauxhall over GM's job cuts
Bill Condie18.02.09
General Motors' plans to cut 47,000 jobs worldwide today spread more gloom over its Ellesmere Port Vauxhall plant on Merseyside.
As part of yesterday's submission to the US Treasury, GM said it now plans to close 14 factories by 2012 rather than the previously announced nine. A total of 5000 employees work for Vauxhall in the UK.
European plants thought to be most at risk include Ellesmere Port and Antwerp.
"The economic crisis and its severe impact on consumer confidence and purchase behaviour will require GME (GM Europe) to take further restructuring measures, while trying to preserve as many jobs as possible," the company said recently.
Business Secretary Lord Mandelson has announced a £2.3 billion aid package for the car industry and trade and investment minister Mervyn Davies is drawing up additional funding plans for car companies' financing arms.
A failure in the auto industry would have wide ramifications. Jaguar Land Rover, for example, spends £2.5 billion on suppliers each year.
