Vauxhall, Ford boost UK car industry

Vauxhall's Ellesmere Port production lines

Vauxhall and Ford are providing the UK car industry with a double boost which will create 600 jobs and safeguard thousands more.

The news of the two investments, worth a combined £440m, follows last month's decision by Nissan to build its new Micra in the UK.

Vauxhall is to build its new Vectra model in Ellesmere Port in the North West of England.

The £200m investment safeguards more than 1,200 jobs.

Bidding war

The firm, part of General Motors, wanted £5m in government grants to ensure that the Ellesmere Port plant won the work to build 180,000 new-style Vectra cars a year.

The plant, which currently makes Astras, was bidding against a sister factory in Antwerp.

Vauxhall recently announced that it would end production of the Vectra at its Luton factory, north of London, with the loss of 2,000 jobs.

The company - known as Opel in continental Europe and as Vauxhall in the UK - is cutting costs in response to a profits slump.

"GM Europe is in significant financial difficulties, as is the automotive industry generally in Europe," Vauxhall chief Nick Reilly told UK MPs last month.

Bridgend Ford motors ahead

But the news was not given wholehearted support by union.

Tony Woodley, national secretary for the car industry at the Transport and General Workers' Union, said the company's announcement had been brought forward to try to influence the Vauxhall strike ballot.

He also said Vauxhall had failed to give assurances about the replacement Astra - the Delta - going to Ellesmere Port.

Meanwhile Ford UK is set to confirm a £240m investment at its south Wales plant to build a new generation of Jaguar V6 engines.

The investment at Bridgend Ford will create about 500 new jobs.

Ford's investment brings some much needed good news to South Wales, hit last week by the news that thousands of jobs were to be axed by steel giant Corus.

Reversal of fortunes

The news from Ford reverses a recent run of job cuts at its UK plants, notably Dagenham.

Bridgend's 1,500 workers escaped the heavy round of cuts.

The V6 engine will power the forthcoming "baby" Jaguar, which will be built at Halewood on Merseyside.

Bridgend will produce about 100,000 of the engines every year.

Assembly First Minister Rhodri Morgan said the announcement was a "major coup for Welsh industry."

'World class'

TGWU Wales leader Jim Hancock said it was a "triumph for partnership".

"Ford's decision to manufacture the new generation V6 engine at Bridgend is a massive vote of confidence in its Welsh workforce and a tribute to their skills and teamwork," he said.

"It will anchor Bridgend firmly at the forefront of premier engine manufacturing. It displays a commitment to Welsh manufacturing by a world class company," he said.

Mr Hancock said the new V6 power unit would be a prestigious addition to Bridgend's already impressive product portfolio.

"It will anchor Bridgend firmly at the forefront of premier engine manufacture for many years to come," Mr Hancock added.

Mr Hancock praised the teamwork behind the plants bid which swayed the company's decision to invest in Bridgend rather than Cleveland, USA.

"This has been the result of a vigorous... team effort by the Union, Management, Welsh Assembly, WDA and of course the Welsh workforce - an unbeatable Welsh combination."