Vauxhall could end Ellesmere Port production if Brexit makes it unprofitable
Vauxhall could end production of the Astra in Ellesmere Port in Cheshire if Brexit makes it unprofitable.
The boss of French carmaker PSA, which owns the Vauxhall and Opel brands, warned that the company had picked another site in Southern Europe to build future Astras if the UK could not reach a satisfactory Brexit deal.
“Frankly I would prefer to put it [the Astra] 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,” he told the Financial Times. “We have an alternative to Ellesmere Port.”
Read more: Vauxhall says building new Astra in the UK contingent on final Brexit deal
The Ellesmere Port site employs over 1,000 workers. Its closure would reduce the company’s presence to its van plant in Luton which also employs over 1,000 workers.
In June PSA said manufacturing of the new Astra in the UK would be contingent on the terms of the Brexit deal.
“We need visibility on what is going to happen in October,” Tavares told the FT.
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“For us it’s quite simple; we need visibility on customs; that’s all. We need visibility on customs for parts coming from continental Europe or from the rest of the world, and we need visibility on the customs for cars coming out of the UK to continental Europe. Those are the only things we need; everything else we’ll take care of.”
PSA said the new Astra would be manufactured at Ellesmere Port in Cheshire and at Russelsheim in Germany.
The current Astra is built at Ellesmere Port and Gliwice in Poland – the latter site will move to the production of vans.
“We need the second capacity to fulfil the market needs,” Tavares said, adding the company had to make a decision within “a few months”.
Picture credit: Getty