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Wednesday, 10 May 2006, 19:19 GMT 20:19 UK

GM considers 1,000 job cuts in UK

Astra production at Ellesmere Port General Motors (GM) has confirmed that it is considering axing 1,000 jobs in the UK this year.

The group hopes to cut production of the Vauxhall Astra model at its plant in Ellesmere Port, Merseyside, GM Europe chief Carl-Peter Forster said.

On Monday, GM said it was reviewing production capacity across its three Astra plants in Europe as it expects demand for the car to decline.

GM is in talks with unions who want to spread the cuts across Europe.

Amicus has said that simply cutting jobs in the UK "makes no sense" and called for cuts to also take place at Astra plants in Belgium and Germany.

Cutbacks

However, Mr Forster told journalists that such a plan was not "not super-attractive".

"This just delays a real solution," he said on the sidelines of a ceremony opening GM Europe's design centre in Ruesselsheim, Germany.

Mr Forster declined to give a deadline for any decision, but did add: "We won't debate this for weeks."

However, the carmaker also stressed that no decision has yet been made.

If the plan does go ahead, it will mean one-third of the 3,000-strong workforce at the Merseyside plant will face the axe.

The company has been examining ways of boosting production and cutting costs as part of a restructuring drive which includes axing around 12,000 jobs.



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