GM: We're Staying In Luton, The French May Go

A few months ago I reported how Renault was planning on pulling out of IBC Vehicles (a joint venture between Nissan, General Motors and Renault) so they could take production of their Renault Trafic van to their underutilized plant in Sandouville, France. This would have left IBC Vehicles in trouble as valuable volume would have left the plant in a precarious position. Well, it seems IBC Vehicles can now afford to say “Au Revoir” to Renault.

The Telegraph reports that even though sales at IBC Vehicles fell by almost a third in 2009 (2008 saw IBC making 87,175 vehicles. 2009 IBC produced 54,207 units), GM has IBC Vehicles’ back. Right now GM and Renault are locked in talks about where their partnership is going (my guess is that Renault wants the partnership to go over the English Channel). But Nick Reilly (CEO of GM Europe) said he was “confident” of securing the future of IBC Vehicles in Luton and that even if the production of vans left Luton, GM “has some ideas for some other things”. A little research shows that Luton used to build the Vauxhall Cavalier (A.K.A Opel Vectra first generation) and the second generation Vectra (when GM retired the “Cavalier” name) so maybe a return to building cars is on the agenda?

Duncan Aldred, MD of Vauxhall said “Luton is the home of Vauxhall and has been since 1903. We are committed to maintaining production in Luton in some way, shape or form.” Frankly, I’m stunned for 2 reasons.

1. Production is actually staying in the UK and at a factory which was in the same league as GM’s Antwerp factory (i.e Dead Plant Operating) and

2. This is the second day I’ve reported good things about GM. I may actually consider a Vauxhall for my next car! But only the Astra. That’s made in the UK.