General Motors Company (GM) recently decided to start producing the next generation of Vivaro van from its Vauxhall’s factory in Luton. The announcement comes as an extension of an agreement with the co-developer Renault.
Together they will produce 62,000 units of the new model of Vivaro van each year under the Vauxhall brand. The new generation vehicles are due to launch in 2013.
The Vauxhall Vivaro vans were first launched in the year 2001. Since then it has been living up to customers’ demand and retain their satisfaction. It even won the prestigious award from the Professional Van and Light Truck Magazine as the Van of the year in 2006.
Demand for light commercial vehicles in Europe has been escalating with the revival of economic conditions. Carmakers are keen to make best use of this growing demand and reap high benefits as well as expand its market. General Motor’s decision to add new models to its existing Vivaro portfolio is a well calculated move towards this end.
The decision to use the Vauxhall factory for the purpose of new Vivaro production comes as a boom for the plant. U.K.’s largest light commercial vehicle plant had been in jeopardy and its closure had been looming over the last couple of years.
The auto industry was crumbling in the face of an economic crisis that had set in 2008. The European markets, their employment scenario and the auto manufacturers were in bad shape. Vauxhall was no exception in this regard. However, the recent announcement comes as a revival note, securing its future for at least another decade.
During 2010, General Motors earned a net profit of $4.7 billion or $2.89 per share. Revenues were $135.6 billion in the year. General Motors’ key competitors, particularly in the commercial vehicle segment, include Volkswagen, Mercedes Benz (Vito) and Ford Motor Co. (F) (Transit).
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