Currently reading: Brexit slows Vauxhall Corsa and Insignia production
German plants that build cars for British market set to reduce supply as profits shrink

Production for the Vauxhall Corsa and Insignia will be scaled back due to a weak pound following Britain's decision to leave the European Union.

Insiders say Brexit’s impact on the pound means General Motors’ British brand - which is known as Opel on the Continent – is making less profit on each model it sells in the UK.

The lower value pound is also expected to impact demand in the coming months, so the car maker is preparing to adjust the operating hours for two of its German production facilities, Esienach and Ruesselsheim, where 5000 people are employed.

"The Brexit situation is an issue for everybody who does business in and with the UK at the moment and we already announced last month that there will be an impact on our European financial performance if the value of the pound remains at its current level for the rest of the year,” explained Opel in an official statement.

While demand is expected to slow, both the Corsa and Insignia are among the best-selling vehicles in Britain. However, insiders say not even this can offset rising costs following Brexit.

Vauxhall insignia facelift 083

Last month Autocar reported how an LMC Automotive report said Vauxhall would be the first European car maker to move production from the UK to Europe, following Britain’s self-ejection from Europe.

Opel’s latest statement adds weight to LMC’s predictions and casts more doubt over the future of Vauxhall in Britain. Vauxhall’s latest statement regarding its UK facilities said no decision would be made until the British government’s plans for Brexit were revealed.

Volkswagen production issues

Elsewhere in Europe, Volkswagen has also revealed that six of its European plants have been hit by supply shortages, leading to the halting of production for the Volkswagen Golf and Volkswagen Passat in Germany.

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The issue is not associated with Brexit but rather to do with a dispute between the brand and two parts suppliers, both of which are subsidiaries of Prevent Group. Around 25,000 workers have been affected by the issue.

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Citytiger 23 August 2016

Is that the same GM that flew

Is that the same GM that flew its executives and their families on individual private jets to Washington to plead poverty and ask for state help at the height of the banking crisis, the same GM that made more profit from finance products than it did from vehicles, and probably were ultimately responsible for the death of Saab.
gallions1 22 August 2016

Insignia Production

To take advantage of the exchange rate maybe GM should consider moving more production to the UK not taking it away.
scotty5 22 August 2016

Sorry autocar but you're talking dribble!

For arguement's sake I'll agree that Insignia and Corsa production has been scaled down because Brexit caused the pound to weaken.

So where's the story that production of Astra has been INCREASED because of the weak pound caused by Brexit? Isn't the Astra made in the UK? Isn't it now cheaper for those countries that use the Euro to buy Astra? (Same holds true for Vauxhall/Opel vans produced in Luton).

it's just more Brexit scaremongering. For as long as I can remember the £ v Euro has seen fluctuations, why blame Brexit?

Marc 22 August 2016

scotty5 wrote:

scotty5 wrote:

For arguement's sake I'll agree that Insignia and Corsa production has been scaled down because Brexit caused the pound to weaken.

So where's the story that production of Astra has been INCREASED because of the weak pound caused by Brexit? Isn't the Astra made in the UK? Isn't it now cheaper for those countries that use the Euro to buy Astra? (Same holds true for Vauxhall/Opel vans produced in Luton).

it's just more Brexit scaremongering. For as long as I can remember the £ v Euro has seen fluctuations, why blame Brexit?

I don't think they are. Opel are blaming it.

typos1 22 August 2016

Because since Brexit NO ONE

Because since Brexit NO ONE is buying anything, particularly big purchases like cars I know because I work in the trade and I ve had very little work for the last 2 months.
Marc 22 August 2016

typos1 wrote:

typos1 wrote:

Because since Brexit NO ONE is buying anything, particularly big purchases like cars I know because I work in the trade and I ve had very little work for the last 2 months.

Blimey, my wife and daughter have spanked 69k on two cars since.... and I bought a new kayak.