Vauxhall temporarily cut production for a week at its Ellesmere Port plant sue to face decreasing auto sales in Europe.
The economic crisis in Europe hasn’t improved as it was expected, and automakers such as Vauxhall parent General Motors are forced to seek solutions to be able for the build-up of unsold stock. This week GM idled production at its Cheshire plant, instead of choosing to have non-production days.
In May the automaker announced that the Ellesmere Port plant will manufacture the next generation Astra and that a third shift will be added, which means the number of employees will reach 3,000. During the shutdown the workers will continue to be paid. The trade union Unite said it was not surprised by the decision, as many automakers adopt this measure, and that it was confident that the plant’s long-term future was not affected.
In June, AlixPartners, a consultancy company, said it expects Western European auto market to see a drop in demand of 1 million units this year, reaching 13,5 million units sold by the end of 2012. It also added that the worst affected countries were France, Italy and Belgium and car sales will reach 16 million no sooner than 2020.