Vauxhall considers moving Astra production out of Britain
By Caoimhe Toman
Date: Monday 29 Jul 2019
(Sharecast News) - Vauxhall owner PSA said on Monday that it could move Astra production out of the Ellesmere Port factory in the UK if its profits are hurt by Brexit.
PSA chief executive officer, Carlos Tavares, told the Financial Times that the carmaker has alternatives to using that plant which could lead to the closure of the site, risking the loss of 1,000 jobs.
Currently, the Ellesmere Port factory is the only factory that remains operational in the UK along with the Vauxhall's Luton-based van plant.
"Frankly I would prefer to put it [the Astra car] in Ellesmere Port but if the conditions are bad and I cannot make it profitable, then I have to protect the rest of the company and I will not do it," Tavares told the FT. "We have an alternative to Ellesmere Port."
Vauxhall announced in June that it had selected the Ellesmere Port to manufacture its latest Astra generation but it said it would all depend on the final Brexit terms. The company has already confirmed it has another option in mind for the Astra cars if the UK leaves without a deal.
Nevertheless, PSA confirmed on Monday that for now the group was still looking to manufacture the next-generation Astra at Russelsheim and Ellesmere Port.
"PSA Groupe has put in to place a comprehensive 'no-deal' contingency plan that covers human resources, taxation, customs, logistics, production, regulation, supply chain and IT," it added.
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