Thousands of Vauxhall jobs at risk after Brexit vote
Vauxhall's American owner has warned that thousands of jobs are at risk after the Brexit vote saw it take a $400 million hit.
General Motors said that it was "prepared to take whatever action is necessary" to get its European division back on track, calling the UK a 'speed bump' in its path to where it wants to be.
GM hasn't decided where it is going to build the new Vauxhall Astra – the current-generation car is put together at Ellesmere Port in Cheshire. The factory has more than 2,000 employees, while a further 2,500 work at its plant, warehouse and head office in Luton.
If Vauxhall decides to pull production out of the UK, those jobs could be at risk. Speaking yesterday, Chuck Stevens, chief financial officer at GM, said: "We've been spending a lot of time, obviously, with the team in Europe. And I look at the situation in the UK as, you know, a speed bump on our path to where we want to take the business."
GM's chairman and chief executive, Mary Barra, said that the firm's European division would suffer a $400 million writedown over the second half of the year "because of the UK referendum and the resulting devaluation of the British pound".
Before the result of the referendum in June, GM Europe had been expecting to make its first annual profit since 1998. Over the first six months of the year, it made an operating profit of $131 million but yesterday reported losses of $142 million in the three months to September 30. This represented an $11 million loss for the first nine months of the year.