Vauxhall, Nissan decisions loom

The Vectra may be produced alongside the Astra

Hopes that the new Vectra may be built in the UK have been given a boost by Mike Burns, head of European operations for Vauxhall parent company General Motors.

Carlos Ghosn found it hard to make money in 2000

It seems the company would like the car to be produced alongside the Astra, which is approaching the end of its life, at the company's Ellesmere Port plant in north west England, rather than build it at GM's factory in Antwerp, Belgium.

"My preference is for the new Vectra to be built at Ellesmere Port," Mr Burns said at the Detroit Motor Show, the Daily Telegraph reported on Wednesday.

But the decision depends on how Vauxhall chief executive Nick Reilly and unions work together, Mr Burns was reported to have said.

A decision is expected by the middle of February.

His comment followed GM's announcement in December that it was closing its Vauxhall Luton plant, where it makes the Vectra at the moment.

The announcement caused outrage among GM's workers who are planning a day of action over the Luton plant shut-down on January 25.

Nissan to decide on the Micra

The decision on Ellesmere Port will be one of a number of vital ones looming for the British car industry.

Nissan is about to decide whether to build its Micra at its factory in the north east of England or in continental Europe.

The strength of the UK currency may be a decisive factor following a year when a high pound and a low euro made it almost impossible to make a profit for car makers in the UK, the chairman of Nissan Motors Carlos Ghosn was quoted as saying by the Financial Times.

A worldwide slump in sales is hitting car makers across the world.

GM recently said it will reduce its salaried workforce both in the US and the UK by about 10%.

In the US, GM saw an 18% fall in sales in December compared to 1999.

The car maker is temporarily shutting down production at at least eight car plants to counter the fall in demand.