GM to cut 354 jobs at Vauxhall plant in UK

LONDON (Reuters) - U.S. carmaker General Motors GM.UL plans to cut 354 jobs at its British Vauxhall plant in Luton.

Talks will begin with unions on the timing of the job losses which are to be voluntary, GM said on Monday.

"One element of the current plan is a proposal to reduce GMM Luton's headcount by 354 employees to right-size the business in line with the 2010 forecast production volume," the company said.

The number was "subject to further local consultation," it said.

The losses are part of an overall restructuring of its European business, which could see nearly 9,000 jobs disappear, with Germany being worst hit.

Nick Reilly, interim head of GM's European business, said earlier this month the company must reduce its production across Europe by 20-25 percent as part of a 3.3 billion euro ($4.96 billion) plan.

GM scrapped plans to sell Opel, including its British Vauxhall plants, to a group led by Canadian auto parts maker Magna MGa.TO in early November, casting further doubt over its European operations and risking a confrontation with unions across Europe.

GM hopes to continue manufacturing at its UK plants, Ellesmere Port in northwest England, and Luton, north of London.

Luton, the light commercial vehicle plant, builds Renault Trafic and Opel Vivaro van models.

GM said last week that there were no jobs at risk at the main Astra plant in Ellesmere Port.

Vauxhall employs about 5,500 people in Britain.

The British government has said it would be willing to provide funding to secure the future of Opel car plants in Britain.

($1=.6650 Euro)

(Reporting by Avril Ormsby; Editing by Jon Hemming and Jon Loades-Carter)