good news for a change
- Thread starter nick mercedes
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Igurisu
Active Member
Yes, great news. This is basically a reflection of the cost to build a car in the UK as opposed to the cost of building a car in Germany.
Not a decision that Opel have taken lightly as it will mean many job losses in Germany, the cost of making people redundant in Germany is much higher than the UK.
Not a decision that Opel have taken lightly as it will mean many job losses in Germany, the cost of making people redundant in Germany is much higher than the UK.
Palfrem
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...even if that shrill harridan on R4's Today programme couldn't pronounce Ellesmere Port properly this morning
D
Deleted member 37751
Guest
Exert from the BBC news piece;
But the willingness of unions and workers at the plant to agree to more flexible working arrangements is thought to have played an important role in GM's decision, as has the government's engagement on the issue in recent months.
See what happens when all interested parties work together?
But the willingness of unions and workers at the plant to agree to more flexible working arrangements is thought to have played an important role in GM's decision, as has the government's engagement on the issue in recent months.
See what happens when all interested parties work together?
trapperjohn
MB Enthusiast
You beat me to it Lee. Modern partnerships are superb.
Mike Walker
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Such a shame that the Euromob can't achieve the same.......yet!
Sp!ke
Administrator
How can more Vauxhalls being made be good news?
grober
MB Master
The workers in Ellesmere port probably owe their present rosy future to the fact the German Government were not prepared to throw OPEL to the wolves willy nilly after GM's "tango with bankruptcy" in 2009. Without their intervention/influence it's doubtful there would still be a GM Europe to keep Vauxhall alive- as it was they were next on the hit list after SAAB became GM's sacrificial lamb.
Igurisu
Active Member
As daft as it may sound the Vauhall badge and RHD in the UK played quite a big part in this.
GM/Opel have been wanting to unify the Astra and Insignia build for many years, maybe even decades. However the Vauxhall brand is so strong in the UK they were afraid of losing market share and sales if they went through a re-branding exercise and called them Opel's in the UK.
In addition, adding RHD cars to the production lines in Germany would have an effect on the plant efficiency due to added complexity. As SPX said, the flexibility of the british workforce and co-operation with management has meant these problems will be minimised in the UK. I'm not sure but I guess there are already LHD cars coming off the lines at Ellesmere Port.
Overall, it may also be an indication of GM/Opel strategy where the Euro is headed, exchange rates will also have been considered in a decision of this size. Not just current but future guesses/expectations.
For Germany the weakness of the Euro gives them a huge advantage as a global exporter (2nd biggest in the world after China I beleive). Should the weaker countries exit the Euro at some stage, the Euro would become much stronger and the cost to export from the Euro zone will increase. In that scenario then German cars would not be such good value outside the the Euro zone.
GM/Opel have been wanting to unify the Astra and Insignia build for many years, maybe even decades. However the Vauxhall brand is so strong in the UK they were afraid of losing market share and sales if they went through a re-branding exercise and called them Opel's in the UK.
In addition, adding RHD cars to the production lines in Germany would have an effect on the plant efficiency due to added complexity. As SPX said, the flexibility of the british workforce and co-operation with management has meant these problems will be minimised in the UK. I'm not sure but I guess there are already LHD cars coming off the lines at Ellesmere Port.
Overall, it may also be an indication of GM/Opel strategy where the Euro is headed, exchange rates will also have been considered in a decision of this size. Not just current but future guesses/expectations.
For Germany the weakness of the Euro gives them a huge advantage as a global exporter (2nd biggest in the world after China I beleive). Should the weaker countries exit the Euro at some stage, the Euro would become much stronger and the cost to export from the Euro zone will increase. In that scenario then German cars would not be such good value outside the the Euro zone.
trapperjohn
MB Enthusiast
Good news indeed.
Surprised you missed this story though:
BBC News - Racing car maker Lola applies for administration
very sad news for British motorsport
I can't add too much to the thread for commercial reasons, but the big vote-winner was the plant productivity. EP produces nearly 50 cars per hour on two shifts (and includes LHD), while the european plants run at about 40 (or 30 for Germany) on a three-shift basis - at the same quality levels. EP will be moving to 7 day, 3 shift working and so employment levels will be up. The other big change is the removal of summer and winter shutdowns - which will up productivity alongside the adoption of changed plant maintenance practice.
Refreshing to see the workforce behind this too - 2 year pay freeze followed by two years of RPI + 1%. That pays for the german redundancy package.
Sounds like a very fair deal to me, when you consider the over production of cars in Europe will ultimately lead to wider plant closures.
Igurisu
Active Member
A little more detailed information from Automotive News http://europe.autonews.com/apps/pbcs.dll/article?AID=/20120517/ANE/120519888/1198
Mr E, Are you working in GM/Opel? I visit Opel Russelshiem fairly frequently, maybe we can say hello?
Mr E, Are you working in GM/Opel? I visit Opel Russelshiem fairly frequently, maybe we can say hello?
We do some independent consultancy for GM, so we were involved in validating the numbers and doing a "blind" set of recommendations.
My commercial relationship with GM and Vauxhall goes back about 12 years - we work with most European OEMs and a few Tier 1 suppliers. Got heavily involved with Block Exemption stuff, warranty creation (swiftly ducks) and do a lot of research compilation. Interesting and varied stuff, and my team now covers quite a few non-European players too.
Haven't been to Russelshiem for a few years now - most of the recent sessions have been "off-site" in the US and Europe.
OP
OP
nick mercedes
MB Enthusiast
Aren't all Astra hatches built in Europe, and just the estates built here (LHD&RHD)?
Igurisu
Active Member
Maybe Nick, to be honest I'm not 100% as I never get into EP, only Opel at Russelshiem. I was under the impression that all the Vauxhall badged RHD cars were built in Ep but as I said not 100% sure.
Scott_F
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I still haven't got used to Opel Fruits becoming Star Burst.
st4
Banned
The tags are great
OP
OP
nick mercedes
MB Enthusiast
Ellesmere Port's the lead plant for sports tourers (estate cars) and Astravans, good news if they start building all versions there, tough luck for the Germans
