Monday , April 19 2021

PSA can close one of Vauxhall's factories in …

The PSA Group could close one of Britain's two Vauxhall plants as a result of the effects of Brexit, but also under the Opel / Vauxhall Restructuring process.

Opel / Vauxhall could run out of one of the factories if PSA bosses, two German and British brands last year, think two are too many, according to Automotive News. The exit of the UK from the EU and the restructuring of the former German company bought by PSA are two good reasons to abandon production at one of the two factories on the island.

The alternatives considered are to stop production for a long time or create stock of components to avoid post-crisis Brexit.

The company declined to comment on this information, stating officially that the PSA Group has not taken any decision in this regard. "We have some solutions for different scenarios."

The PSA Group has about 3,000 employees in the UK, most of them in the factory at Ellesmere Port, where Astra models are manufactured.

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The UK auto market is already declining due to the diesel crisis and prospects for a tough Brexit are leading analysts to anticipate an even bigger slump in the market. The Vauxhall brand is one of the biggest falls, compared to Peugeot and Citroën, which are in the middle of the market.

PSA has cut about 650 jobs at Ellesmere since its acquisition, while at Luton it has announced investments of 100 million euros and the introduction of a new manufacturing model.

According to data from the transport department, 80% of vehicles produced in the UK are exported, but those numbers will be severely affected by Brexit.

Carols Tavares, CEO of the PSA Group, said earlier that unless there is an EU-UK agreement, his responsibility will be to protect the company.

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