Vauxhall reveals plans for profit
* New products planned * Billions to be invested * Aim for profitability in 2012...
A few months ago Vauxhall/Opel's prospects looked uncertain; now its boss, Nick Reilly, has put the company on an ambitious path to profitability, which he expects to realise in 2012.
British jobs affected
Reilly confirmed yesterday that 8300 jobs would be cut as part of the company's restructuring plans. At least 500 of these will be from the British workforce: 369 from the van factory in Luton and 154 from the administrative side of the company.
However, Vauxhall's other factory at Ellesmere Port, which produces the Astra, is due to start a third shift by the middle of next year.
Billions in investment sought
Funding Vauxhall's return to profit will require 11 billion (9.7 billion) of investment over the next five years. This includes a contribution from parent company General Motors, and Reilly has applied for funding from European governments.
New Vauxhall products
Reilly said that at least 1 billion (876 million) would be invested in projects looking at alternative propulsion and powertrain efficiency.
He confirmed that a second 'extended range electric vehicle' will follow the electric Ampera which will be launched launch in 2012 with more details of this to be announced at the Geneva motor show in March.
A smaller, purely electric vehicle is also planned, along with engine stop-start technology.