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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