Falling Sales Lead to Production Cuts
Vauxhall Cut Production
- Supply cuts to meet demand
Vansdirect recently brought you news of Ford’s plan to cut production and jobs in Southampton, and now Vauxhall appear to be following suit. Whilst there is allegedly no immediate threat to the future of GM’s Luton van plant, production will be cut to align supply with the falling demand.
The factory in Luton currently makes Vauxhall’s Vivaro as well as Nissan’s Primastar and Renault’s Trafic vans. Whilst output is still set to beat 90,000 units this year, GM are taking the unusual action of ceasing production for eight days this month to align the supply and demand of UK and other European markets. The same practice may be adopted by GM’s sister plant in Cheshire which manufactures both the Astra and Astravan albeit not to the same degree.
Lasy year GM produced 97,000 units at the Luton factory and despite a spokesperson denying any threat to the factory’s future, they could only confirm this security until 2013. We can only wait to see what will happen closer to this time, but with the escalating costs of British manufacturing operations, perhaps GM will have little option but to move production elsewhere.
One Response to “Falling Sales Lead to Production Cuts”
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March 1st, 2009 at 12:01 pm
Hello. Great job. I did not expect this on a Wednesday. This is a great story. Thanks!