General Motors promises fewer job cuts at Vauxhall

Vauxhall workers have been given a major boost after the new British interim boss of parent company General Motors Europe said he was looking to maintain vehicle production at both the Ellesmere Port and Luton plants.

Former Vauxhall chief Nick Reilly, who is heading up GM Europe in the wake of the departure of Carl-Peter Forster who quit in protest at General Motors’ decision not to sell a majority stake in the company to Magna International, met Business Secretary Lord Mandelson and trade union leaders in London yesterday (Tuesday, November 17).

Mr Reilly is visiting all the European countries in which GM has plants as he compiles a restructuring plan for the business, which is now expected to be announced next month.

Following the talks, Mr Reilly said his plan for Vauxhall was likely to result in fewer job losses than under the aborted takeover by the Magna consortium.

Originally about 800 job cuts were pencilled in at the two UK plants, but Mr Reilly said there were opportunities to ‘quite significantly’ reduce that figure. There are about 5,500 Vauxhall employees in the UK and the number of job cuts could be as low as 300.

Under the Magna plan it was also believed that the Luton plant could close after 2013 when its current contract to build a van in partnership with Renault expires.

However, Mr Reilly said GM was in talks with the French manufacturer about extending the joint venture beyond 2013. He also said that GM would explore alternatives if Renault withdrew.

Meanwhile, Lord Mandelson has said that the UK was prepared to provide financial backing for the restructuring. GM needs to put together a €3.3 billion financial package with help from European governments to finance its future.

It is expected that between 9,000 and 10,000 jobs out of GM’s 50,000 workforce will be cut across Europe, Mr Reilly said, because Opel/Vauxhall still needed to cut a fifth of its manufacturing capacity. (National newspapers: November 18).

• The European Union has invited General Motors and economic ministers from EU countries with Vauxhall/Opel plants to meet in Brussels on Monday (November 23) to discuss the company’s restructuring plans for Europe. The aim is to talk about the future of GM in Europe and to ‘coordinate’, according to EU officials. The EU is trying to head off a bidding war between countries keen to provide subsidies that protect jobs and also to ensure that EU rules on state aid and competition are observed. GM’s acting head of European operations Nick Reilly is also expected to attend the session. (Just-auto.com: November 18).

New government legislation targets rogue wheel clampers

New legislation proposed by the government includes the introduction of a compulsory licensing scheme for all wheel clamping businesses.

The legislation is contained within the government’s new Crime and Security Bill, which was one of 15 new bills announced in the Queen’s Speech today (Wednesday, November 18) opening the final session of Parliament prior to a general election next year.

The law, if passed, will also limit the size of penalties imposed by wheel clampers, regulate towing practices and put in place an effective and fair appeals process.

The long-expected legislation follows widesprad complaints from the public about the ‘bully boy’ tactics of clampers.

Earlier this year Edmund King, president of the AA, said: “It is time for strict regulation on what clampers can and cannot do and this must be within a code which works for car park operators and drivers – many parking offences are minor in nature and don’t deserve such draconian punishment. It is reported that the number of motorists who have been wheel clamped has risen by 64% in the last 12 months with private clamping firms taking £58 million.”

Additionally, the government has committed to the migration of digital radio through the Digital Economy Bill.

Earlier this year, the government published the ‘Digital Britain Report’, which included moves to ensure that car radios are digitally enabled by 2013.

The Society of Motor Manufacturers and Traders has welcomed the Bill, although it does have reservations about the timetable for introduction.

SMMT chief executive Paul Everitt said: “A collaborative approach between broadcasters, vehicle manufacturers and government is essential for the effective delivery of the Digital Britain recommendations and government’s Digital Economy Bill. Broadcasters must now increase the content and coverage of digital radio and work with government to build awareness of its availability. This will help generate consumer demand to justify investment by vehicle manufacturers.” (10 Downing Street/AA/SMMT: November 18).

Europcar named world’s leading car rental company

Europcar has been named the World’s Leading Car Rental Company, at the 2008 World Travel Awards ceremony in London, following its title of Europe’s Leading Car Rental Company in Portugal last month.

The World Travel Awards are the ‘Oscars’ of the travel industry, with 187,000 industry professionals voting for the best company in each category across seven regions of the world.

Jehan de Thé, global marketing director of Europcar International, who accepted the trophy in London, commented: “We are truly proud to have won these two awards. They represent our commitment to providing the highest quality of service – a value shared by our entire network, as demonstrated by the awards won by Europcar in Europe, Africa, the Middle East and Central America.” (Fleet Europe: November 18).