February 2009 Car News - GBCarLoans.com

20th February 2009

UK Car Plant Closure Looming

A UK car plant could have to close completely within days if no action is taken. The plant as yet not named employs more than 6,000 people.Tony Woodley refused to name the facility in question, but he said it needed urgent state aid in order to stay open and help keep 6,00 people from loosing their jobs. Business secretary Lord Mandelson has yet to comment on the closure, but urged people to "stop feeding the rumours". He stated that the government would help if it could and it was required.

Recent data shows that UK car production has slumped in January. New car production in the UK fell dramatically in January from a year earlier, according to the Society of Motor Manufacturers and Traders (SMMT). A total of 61,404 new cars were produced last month, 58.7% lower than January 2008, as plants closed for extended winter shutdowns. SMMT chief executive Paul Everitt said that production for overseas markets, particularly Europe, had weathered the downturn better than production for the domestic market.
Workers at Vauxhall's UK plants believe redundancies could be made following an announcement by the company's US parent General Motors that it is to axe up to 47,000 workers worldwide.
BMW, Nissan, Jaguar, Land Rover, Bentley and Toyota have all announced either job cuts or production reductions.

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