Epsilon decision awaited

General Motors is not expected to decide until the summer whether the next generation Vectra car, code-named Epsilon, will be manufactured at Vauxhall’s Luton plant. The company is engaged in talks with unions and is believed to be seeking agreement on new productivity and cost cutting targets across its British operations. It hopes to reach […]

General Motors is not expected to decide until the summer whether the next generation Vectra car, code-named Epsilon, will be manufactured at Vauxhall’s Luton plant.

The company is engaged in talks with unions and is believed to be seeking agreement on new productivity and cost cutting targets across its British operations. It hopes to reach a settlement soon.

A spokesman for GM could not comment on reports that its plants in Germany and Belgium, which are believed to have negotiated new agreements with workers, have had production of the new Vectra confirmed from 2003. Vauxhall management were due to meet union representatives on Wednesday ‘over a number of issues’ according to an official statement.

Nick Reilly, Vauxhall’s chairman and managing director, described a meeting last week as ‘the first step on the road to what I believe will be a strong and realistic agreement for both sides’.

He said: ‘This will allow us to maintain all of Vauxhall’s operations at world class standards of cost and productivity levels well into the next millennium.’

Vauxhall employs 4,500 staff at the Luton plant, which builds the Vectra model for UK and export markets.