Confirmation of a multi-billion pound investment for GM’s European operations is a “statement of intent” that should end speculation about Vauxhall’s future, the company says.
General Motors announced last week that it was investing £3.4 billion in the European arm of its business, and its directors met with German chanceller Angela Merkel to discuss the company’s ten-year plan to get back to profitability.
Vauxhall’s UK spokesman Denis Chick said the cash included the investment already confirmed for production of the new Vivaro van in Luton, which begins early next year.
“There’s no doubt at all that GM is very serious about Europe,” he said. “This is underpinned by heavy investment in product introductions between now and 2016.
“GM have a plan to get the company back into profit by the end of the decade. There was still speculation in the German media that they weren’t serious about this, but the investment is a statement of intent.
What remained a problem, however, was the state of the market in mainland Europe, said Mr Chick.
“It’s up to 40 per cent down in some areas – it’s a massive challenge to the industry. We are hoping to see some recovery later this year.”