General Motors has announced that the new Vectra will be built at Ellesmere Port, securing more than 1,000 jobs.
The Luton plant will continue to build the current Vectra until March 2002 and then concentrate on commercial and off-road vehicles.
Making the announcement Nick Reilly, Vauxhall chairman and managing director, said : “Ellesmore Port now has an excellent opportunity to make further strides in productivity as we can anticipate high utilisation of capacity on a consistent basis.
“The decision maintains Vectra manufacturing in the UK which is important for our customers and for our UK suppliers. It will also strengthen Vauxhall's future position as a major UK vehicle producer. It confirms us as a key resource within GM Europe's manufacturing operations.”
700 jobs have been secured at Ellesmere Port and at least another 570 jobs at suppliers in the UK, including some at Luton, which would have gone if the Vectra was built elsewhere, said Mr Reilly.
GM was understood to be considering making the Opel plant in Russelsheim, Germany, home of the next generation Vectra.
Vauxhall has also confirmed there will be no compulsory job losses this year as a result of its decision before Christmas to end car production at Luton and it is still “working to avoid” any involuntary redundancies next year.