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With the manufacturing face of the world changing over the previous twelve months it is great that we can bring some positive news on the subject. It had been rumored that Vauxhall was set to close its plant in Luton where a small number of Vivaro models are made.
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The closer of the factory would have left around 1500 Vauxhall employees without work which would have been a major blow to the area. The move by Vauxhall has also indirectly secured the jobs of a further 4500 employees who work for the local firms that supply the factory. It is clear that the closure of this plant would have devastated Luton and left a large number of businesses with no income and a lot of people with no jobs.
The plant came under fires as it is the smallest producer of models in the UK. Obviously with size comes economies of scale so the plant stuck out to its owners. However whilst the plant is small in terms of size for Vauxhall it is massive in terms of the local economy.
The news that the plant will not be closed was confirmed when a new model has been ordered from the plant. Without the order the plant would have definitely closed. Now the plant has work until at least 2020 which provides a huge amount of stability for the region. The investment in the plant will also provide economic confidence in the region as employees incomes will remain until at least 2020.
Unite the union has come in in great praise of the decision. Clearly for them this is a huge boost that their members are now secure. A Unite spokesperson said the news was fantastic for its members and praised Vauxhall for putting to rest the uncertainty over jobs.
Apart from being a small plant there was further uncertainty over the Vivaro model as the production was a dual effort with Renault. The partnership was set to end in 2013 and the production of the model was due to cease. As the model has been a success the partnership has been renewed and new orders are set to roll off the production line.
Further good news was announced by Vauxhall as when new models are ordered there is normally a period where the factory has to be upgraded. With new models come new parts, new production techniques and new equipment. Vauxhall is set to invest 130 million in the plant which will probably filter into the regions building firms.
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This really is great news to the people of Luton, with around 6,000 jobs working in and around
the factory it really is a huge part of the region when the 130 million investment starts to be spent further jobs will be created to fill the work that is needed in the plant.
Across the country motoring manufacturing is a huge employer even thought the industry has declined in the UK. We hope that this is the start of further good news in the industry and a commitment to manufacturing in the country.
