Britannia Radio

SKY NEWS 3.3.09 at 4.35pm
Vauxhall May Have To Close Without Bail-Out

Vauxhall factories could close if bail-out talks with the Government
do not bear fruit, the head of General Motors Europe has told Sky News.

Vauxhall, owned by US giant General Motors, has plants in Luton and
Wirral

Speaking at the Geneva Motor Show, Carl-Peter Forster said GM will
consider closing plants at Ellesmere Port and Luton if it does not
extra cash.
Vauxhall employs 3,300 staff at the two factories, while hundreds of
other jobs depend on the fate of its 500 UK dealerships.

Mr Forster told Sky News there were not many options left open for
the firm, which saw new car registrations fall 38% to the year to
November.
"We are very lean in the UK - in Ellesmere Port, same in Luton," he
said. "Obviously the next step would be the complete closure.

"Obviously that's what we try and avoid. But if we don't get support
from the Government we will have to close down."

Mr Forster also said he had received "positive signals" from the
Government regarding the prospect of financial aid.

The German government is already working on an aid package to help
save Vauxhall’s sister company Opel.

It is rumoured to have set aside just over £4.5bn to support the
marque.

Meanwhile, Toyota has also gone to the Japanese government to ask for
a loan.

The world's biggest carmaker confirmed its Financial Services
operation was in talks with the state-backed Japan Bank for
International Co-operation.
There are reports the carmaker, which employs more than 4,000 people
in the UK, has asked for around £1.5bn.