VAUXHALL chairman and managing director Nick Reilly says the decision to close Luton was regrettable - but not a resignation issue. 'If I had personally failed in some way that would be different, but it was not that,' he said.

'It was the inevitable decision due to the timing of product cycles and over-capacity in Europe. It was the only way that General Motors Europe could make significant reductions in capacity. There was nothing Vauxhall could have done to avoid that decision.'

Reilly's new goal is to close the Luton plant in 2002 without any compulsory redundancies. There will be 3,000 jobs lost but 1,000 jobs will be created with the increase in light commercial vehicle production at sister company IBC Vehicles in Luton.

That will leave '2,000 jobs to sort out'. Early retirement packages are being offered across the company. Meanwhile, speculation that General Motors could scrap the Vauxhall brand has been dismissed by chief executive Rick Wagoner. Speaking in Detroit Wagoner said: 'I have not been part of any conversation to not continuing the Vauxhall brand.'