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Four countries share new GM Astra | Four countries share new GM Astra |
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The work to build General Motors' new Astra model is to be shared by plants in Poland, Germany, Sweden and the UK. | |
In the UK, where GM trades as Vauxhall, the new Astra will be manufactured in Ellesmere Port, Merseyside, from 2010. | |
The move safeguards the survival of the site, which has long been threatened with closure. The loser is Belgium, which also used to make the Astra. | The move safeguards the survival of the site, which has long been threatened with closure. The loser is Belgium, which also used to make the Astra. |
US group General Motors has been struggling against mounting losses and rising competition from Asian firms. | |
The Astra is GM's best-selling car in Europe, selling almost half a million vehicles last year. On the continent, the cars are sold under the Opel brand. | The Astra is GM's best-selling car in Europe, selling almost half a million vehicles last year. On the continent, the cars are sold under the Opel brand. |
GM Europe president Carl-Peter Forster made the announcement following talks with worker representatives in Belgium. | GM Europe president Carl-Peter Forster made the announcement following talks with worker representatives in Belgium. |
Winners and losers | |
The decision to base Astra production at the UK site will lead to the equivalent of an entire production shift - corresponding to about 1,400 jobs - being abolished at the company's factory in Antwerp. | The decision to base Astra production at the UK site will lead to the equivalent of an entire production shift - corresponding to about 1,400 jobs - being abolished at the company's factory in Antwerp. |
By contrast, it will lead to a shift being reinstated at the group's site in Merseyside - a move that was warmly welcomed by the government and union leaders. | |
Other sites that will be working on the new "compact" car model will be Bochum in Germany, Gliwice in Poland and Sweden's Trollhattan factory. | |
GM Europe has cut about 12,000 jobs since 2005 as part of efforts to make regional operations profitable again. | |
The operation only returned to the black last year for the first time since 1999, making a profit of $227m (£116m). | The operation only returned to the black last year for the first time since 1999, making a profit of $227m (£116m). |
Parent company GM itself has closed 12 plants in North America and cut more than 34,000 jobs in a bid to cut $9bn from operating costs after unveiling a $10.6bn net loss for 2005. |