Tuesday, December 09, 2008
Car sales slump means long break
Workers at Vauxhall's car plants are being given up to one month off over Christmas because of falling sales.
The site at Ellesmere Port, Cheshire, will be closed from Monday until 12 January, while Luton employees will not return until 5 January.
A spokesman for parent company General Motors (GM) said it was extending its traditional two-week Christmas break because of a lack of demand for cars.
Vauxhall employs about 5,000 people in the UK, including 2,200 in Cheshire.
In October, the factory in Ellesmere Port stopped production for 14 days because of falling sales in Europe.
Car sales in the UK have fallen 37% when compared with the same time last year. That is an increase from October, when the comparative fall was 27%.
"It's a decline that is part of the huge global credit crunch, which means we are building less cars because we have less customers," said a GM spokesman.
"So we are tuning our production to meet the [current] demand.
Union officials at Ellesmere Port estimate the one-month break will mean a drop in production of 6,000 cars.
Workers will be paid during the extra holiday but normally management expect them to make up the time when there is an increase in demand.
Employees now fear job losses or shorter working weeks may be considered by the company in the new year.
GM did not discuss future plans, but the spokesman added: "It looks like the market will continue to decline so were going into 2009 planning for a lot less car sales during 2009. The experts say it could come back in early 2010 but we'll have to wait and see."
The extended shutdown comes after company reprensentatives, along with other British-based car-makers and trade body, the Society of Motor Manufacturers and Traders, met Business Secretary Lord Mandelson.
During the meeting, Lord Mandelson was urged to encourage liquidity back in the finance market, which drives a lot of new car sales, GM said.
DATED: 09.12.08
FEED: AW
