VAUXHALL has reported a substantial rise in profits, but the announcement was coupled with a warning from Chairman Nick Reilly, the former boss at Ellesmere Port.

Although production at Ellesmere Port and Luton increased and pre-tax profits rose from £2.5m to £10m, he described the financial figures as clearly not acceptable in the long term.

Mr Reilly, who was formerly director of manufacturing at Ellesmere Port, said he remained confident.

"This last year has been one of intensely competitive trading conditions and this has depressed profitability.

"But I am optimistic about Vauxhall's potential in the long term," he added.

Mr Reilly said that Vauxhall's optimism was shown in the fact that it had announced, last October, a plan to invest £300m in Wirral for a new Astra,

At the time it was said the massive investment would underpin the plant's future as a key source of Astra for world markets.

Since then, the company has revealed plans to help work toward creating a supplier park at Ellesmere Port and encourage further investment in the area.

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