VAUXHALL has told unions representing 10,000 workers that an agreement on higher productivity should secure the future of Luton as a major General Motors European car plant. The assurance came after the first round of talks with the factory's three main unions over a new three-year deal over pay and conditions.

Chairman Nick Reilly described the talks - brought forward because of fears that the factory could be facing closure - as the first step on the road to a realistic settlement. 'We can reach a strong and realistic agreement for both sides, and this will allow us to maintain all of Vauxhall's operations at a world-class standard of cost and productivity until well into the next millennium,' he said.

A Vauxhall spokesman told Fleet NewsNet: 'More meetings are being held which will encompass just how we can make the company more competitive. For our part, we will seek assurances from GM in terms of future product for the UK.' The US firm has yet to issue a public statement on whether the Vectra's replacement, codenamed Epsilon and due out in five years' time, will come off the producion lines at Luton.