Canadian Manufacturing

Slow sales in crisis hit Europe leads to weeklong production cutback at GM plants in Britain

Approximately 3,000 workers at Ellesmere Port, Luton plants affected by work stoppage

FRANKFURT, Germany—GM’s Vauxhall brand will close two plants in Britain for a week starting Sept. 24 because of weak auto markets in crisis-hit Europe.

The closures at Ellesmere Port and Luton will idle some 3,000 workers.

Vauxhall communications director Denis Chick said the workers would still be paid and their hours would be banked, to be worked off later.

The plants make Vauxhall right-hand drive cars for the U.K. market but most of the output is exported to Europe under the Opel badge.

GM and other mass-market carmarkers have been facing weak sales and tough competition as Europe struggles with a crisis over too much government debt.

Recessions and high unemployment have hit demand for new cars in southern European countries such as Spain, Italy, Portugal and Greece.

Related Posts from the network