Financial Times FT.com

GM warns Belgian plant on costs

By Bernard Simon in Toronto, Sarah Laitner in London and Amy Yee in New Delhi

Published: April 17 2007 19:05 | Last updated: April 17 2007 22:05

General Motors issued a thinly veiled warning to its Antwerp assembly plant in Belgium on Tuesday that production would be transferred to Asia or eastern Europe unless there was a significant reduction in costs.

But the Detroit-based carmaker gave a reprieve to a plant at Ellesmere Port, UK, by including it in plans for a €3.1bn ($4.2bn) investment to build a new small car to replace the Opel Astra.

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