GM Europe positive on UK operations
Nick Reilly, the head of GM Europe, has today given his strongest hint that the company's UK operations will escape any large-scale job cuts until at least 2013. Even though there are 350 jobs to go at the company's Luton van making plant it is hoped that these will be achieved through natural wastage.
The announcement today will be well received by the UK government which has worked tirelessly behind the scenes over the last few weeks to try and save as much of the UK operation as possible. Prior to the collapse of the Magna bid for GM Europe some weeks ago many people believed that the UK government had been outmanoeuvred by the German authorities who took centre stage when the bid was ongoing. However, after the collapse of the Magna bid for GM Europe there is no doubt that Lord Mandelson in particular has worked tirelessly to try and protect UK interests.
Even though the government has been forced to promise millions of pounds of taxpayer funded incentives to GM Europe there is no doubt that on balance, at least so far, this has been a successful strategy from the UK authorities. An effective embargo on any more job losses until 2013 is a major achievement in anybody's eyes!
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