Wednesday, September 5, 2012

General Motors Company (NYSE:GM) Vauxhall plants in Britain to Shut Down for a week

General Motors Company (NYSE:GM) Vauxhall brand in Germany has decided to close two automobile plants in Britain for one week, starting from September 24th, 2012 onward for seven days. As the reason for this closure the company has indicated weak and unpredictable auto market and recent fiscal crisis in overall European market. The management has decided to put closure on Ellesmere Port and Luton plants which will affect adverse on tentatively 3000 workers as they have to be idle and out of work for seven crucial days.

Denis Chick, Vauxhall communications Director has declared that due to this closure workers will not be affected as they will be paid duly and their non working hours will be kept in record as the workers can work on it and get paid accordingly later on.

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These two Vauxhall plants are based at UK but they work for Vauxhall right-hand drive cars and most of the productions are being exported to Europe under the logo Opel. This is the reason the current auto market crisis has compelled the company to stop their production as  they expected that the produced cars will remain dump at manufacturing unit and will get time to be sold.

Present weak economy of Europe is due to excessive government debt; due to constraint in supply of money in market  car markets are facing weak sales and hard competitions between other brands also and that makes the situation almost out of the control where an approximate sales figure in expected from each of the brand.   Technology wise Opel deserves its class by all means but due to its higher price range its sales figures are somehow getting badly affected. In addition to it, financial recession, high employment rates, and unpredictability in market have affected the new care purchase trend in the wide area of European countries like Spain, Portugal, Italy, and Greece.

Now we are to watch and see how GM Vauxhall manages the whole situation maintaining their profitability as well as productivity with labors welfare issue.

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