Day of tension for car workers; Vauxhall staff kept waiting as gearbox maker cuts shifts: Vauxhall site 'will survive' General Motors sell-off.

Byline: ALISTAIR HOUGHTON

MERSEYSIDE'S beleagured car industry suffered another day of turmoil as it emerged a leading component firm will axe one of its three shifts.

Union leaders told the Daily Post of Halewood gearbox maker Getrag Ford's decision yesterday, hours before European ministers were due to hold emergency talks on the future of GMEurope. But there was a glimmer of hope for the region's motor industry as an expert said he was confident Vauxhall's Ellesmere Port plant will survive the turmoil engulfing its parent company General Motors (GM). GMEurope is being sold off as its US owner battles to avoid bankruptcy. Business Secretary Lord Mandelson says he has already secured "categorical" assurances from GMEurope's two bidders that they were committed to continued Vauxhall production in the UKif successful.

Broker Howard Wheeldon, senior strategist at BGC Par tners in London, said yesterday he thought Ellesmere Port would survive in the medium term, whoever bought GMEurope. The plant, which employs 2,200 people, will start building the new Astra in September.Mr Wheeldon said the investment GMEurope had put in ahead of that launch made it likely that production would continue there for years. But he said the future was less bright for the 1,500 staff at its van manufacturing business in Luton.

He said: "I am perhaps less worried than some that, because Germany is taking the lead in this protracted problem, the Ellesmere Por t subsidiary of Vauxhall may be under more pressure than any one of the German or Belgian plants, or that because it appears out on a limb in terms of logistics, it is more likely to suffer the chop. "I may not have any faith in Lord Mandelson, but I actually do believe, in prior discussions with both preferred bidders, he has secured a sufficient enough pledge of commitment to ensure the Ellesmere Port plant has more than just a short-term future. "That cannot be said of the Luton van plant, though.

With contracts running out over the next two years from Nissan and Renault and with no sign of any likely pick-up in van sales, the future for Luton looks to me pretty bleak." Mr Wheeldon also said the UKgovernment would need to offer financial guarantees Howard Wheeldon to GMEurope to ensure Ellesmere Por t's future. He said: "Given that this is probably the most highly-invested of the four specific car production plants under the Opel/Vauxhall brand names, it seems to me that continued production here looks reasonably assured over the next three to four years. "No guarantees, of course, but it seems to me whoever acquires the final rights of GMEurope would be entitled to expect the British government provides adequate short-term financial resources, rather than relying on Lord Mandelson's moral support."

The remaining bidders for GM Europe are Italian car giant Fiat and Canadian car parts maker Magna International. Unite's Merseyside-born joint general secretary, TonyWoodley, said yesterday: "The UK government must now finish the job it has been working on. That means being at the meeting table when the final decisions for the ownership of GMEurope are made. The future of our plants and jobs are at stake. "Germany will be thinking strategically about manufacturing, not just for the next two years but the next 25 years. I believe the British government should be doing the same. "It is crucial we do not allow any other government to drive through a plan which reflects only one country's interests. "We also need to make sure that we put British money up."

Shift set to go at gearbox maker

THE owner of Halewood gearbox maker Getrag Ford wants to axe one of three shifts. Situated next to Jaguar Land Rover's Halewood site, the plant makes gearboxes for Ford Transit vans and Focus and Fiesta cars. About 650 people are employed on machining and production, and the site currently works a three-shiftsystem based on days, nights and lates. Late last year, the plant shut down for a month over Christmas to combat reduced orders and returned to a four-day week. Dave Osborne, lead automotive industry negotiator for Unite the Union, confirmed plans to cut shifts, but said he hoped to avoid job losses. He said: "We met senior Getrag management, who indicated to us their need to reduce shift work in the plant as a result of falling volumes. "They have given notice they intend to move to two-shift working in mid-June or the end of June. "The trade unions have asked to meet shop stewards next week in order to report back the meeting we had with Getrag last week." He added: "We do not foresee any job losses." A spokeswoman at Getrag said: "We are in talks with the union about a reduction in current shift patterns and the need to align costs to current production volumes."

Emergency European meeting today will debate GM's future

EUROPE'S industry ministers were holding emergency talks today amid growing concern about Germany's handling of the attempt to sell off General Motors Europe. The European Commission called today's talks hoping to clarify German thinking following the failure of late-night talks in Berlin on Wednesday to secure a buyer for GM Europe. A Commission spokesman said: "The aim of the meeting is to exchange information and ensure a level playing field for co-ordination." Only a fortnight ago, the Commission met GM bosses, car industry officials and ministers from 12 EU countries, including the UK. Commission vicepresident Gunter Verheugen spoke then about the need for any restructuring of GM Europe to "fully respect EU rules".

The meeting agreed that "no national measures [to support GM Europe] should be taken without prior information and coordination with the Commission and other involved countries". Any state aid measures granted by German chancellor Angela Merkel would have to be approved. Asked about fears the German government could give in to election-year pressure with a pledge to protect domestic jobs at the expense of those in the UK, Lord Mandelson said: "The reason why that is not going to happen is because Vauxhall's production in the UK provides one of the main revenue and profit streams for GM Europe. "There is no question of that simply being dispensed with." The sale of GM Europe is part of the reorganisation of its Detroit-based parent, which is battling to avoid bankruptcy. Pressure to agree on a partner is building ahead of a June 1 restructuring deadline for GM,set by the US government.

CAPTION(S):

Howard Wheeldon Production 'looks assured' -an assembly line at the Vauxhall plant in Ellesmere Port Workers at Vauxhall's Ellesmere Port factory still face an anxious wait to find out who the site's new owner will be following crucial talks