GM to Cut 900 jobs at British Vauxhall Factory

General Motors (GM) has announced it is cutting 900 jobs at the British plant of its subsidiary Vauxhall where it is cutting production. This confirms union fears and renews concern over Britain's rapidly disappearing car manufacturing sector.

GM pledged to try to retain a presence in Britain as it announced it was cutting one of three shifts at its Ellesmere Port factory in northern England The job cuts follow the collapse last year of MG Rover Group Ltd., Britain's last major auto maker, with the loss of more than 6,000 jobs.

General Motors said its decision reflected ongoing pressure in the European car industry to increase productivity and reduce costs. The company will try to cut the jobs through voluntary retirement.

According to Carl-Peter Forster, president of General Motors in Europe, the company had looked for alternatives to job cuts but had found nothing viable.