Closures considered.

VAUXHALL parent company General Motors Europe says factory closures "must be considered" under a restructuring plan that will see it ask for pounds 2.93bn in state aid.

But it is understood that Vauxhall's Ellesmere Port plant, which employs more than 2,000 people, is still likely to escape the axe as it will start building the new Astra in September. GM sees the success of that car as vital for its future growth.

GM Europe has approved a plan to make it profitable by 2011. It plans to raise pounds 2.67bn from US parent GM and make pounds 842m in cost savings.

Ellesmere Port has seen a series of nonproduction periods, and staff recently saw a 10% decrease in hours and a 5% pay reduction, but it is now building pilot versions of the new Astra, ahead of the vehicle going into full production in September. GM has 10 plants in Europe.