'No compulsory redundancies' as Vauxhall owners announce modernisation plans

The owners of car giant Vauxhall have announced plans to modernise plants and reduce the number of platforms for its vehicles, without making compulsory redundancies.

PSA-owned Opel/Vauxhall said it wanted to return to profitability by 2020, with a lower financial break-even point of 800,000 vehicles.

Plants will remain open, including Ellesmere Port, with the French owners planning to make them more efficient.

Opel Automobile's chief executive Michael Lohscheller said all passenger car lines will be electrified by 2024, while new light commercial vehicles will be launched in the coming years.

He said:

A statement said the plan was designed to maintain all plants and "refrain from forced redundancies" in Europe.

"The necessary and sustainable reduction of labour costs shall be reached with thoughtful measures such as innovative working time concepts, voluntary programmes or early retirement schemes."

The company will cut the number of platforms for its vehicles from nine to two and reduce costs by around £600 per car by 2020.