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.

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 Golf and Passat in Germany.

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.

Our Verdict

Vauxhall Corsa cornering

All-new Vauxhall Corsa raises its game with the end result being a classy supermini that’s decent to drive, but still short of the benchmark set by the Ford Fiesta

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Comments
37

22 August 2016
Insignia production is slowing as sales are slowing due to an impending replacement launch - and the large mainstream car is a shrinking sector anyway with buyers moving to premium brands or staying in mainstream but buying MPVs, CUVs or SUVs - this was/is happening regardless of Brexit.

22 August 2016
Ruperts Trooper wrote:

Insignia production is slowing as sales are slowing due to an impending replacement launch - and the large mainstream car is a shrinking sector anyway with buyers moving to premium brands or staying in mainstream but buying MPVs, CUVs or SUVs - this was/is happening regardless of Brexit.

We must not let reality get in the way of click reality must we Autocar?

22 August 2016
devil's advocate wrote:
Ruperts Trooper wrote:

Insignia production is slowing as sales are slowing due to an impending replacement launch - and the large mainstream car is a shrinking sector anyway with buyers moving to premium brands or staying in mainstream but buying MPVs, CUVs or SUVs - this was/is happening regardless of Brexit.

We must not let reality get in the way of click reality must we Autocar?

Absolutely. The D segment is shrinking as the Crossover becomes more popular - we've already recently lost the C5 and the Accord in the UK new car market.

Doesn't help that the Insignia is getting on a bit, in terms of vehicle generation, having been launched in 2008 - now 8 years old, there have been spy pictures of the GM replacement (which is also badged as a Buick for the US and China markets). Still a steady seller though to fleets who have traditionally had heavy discounting.

As for the Corsa, I suspect that many people are seeing through the facade of the 'new' model being - well, 'new', while GM claim that every panel has changed, it still looks like a facelift of the previous model. Internal competition would cannibilise sales, from the Viva/Karl at the lower end of the market to the Adam at the upper end. The Mokka and Meriva may even take sales from those who used the 5 door as a small family car.

22 August 2016
Autocar, when you say insiders do you mean my journalist mate seating next to me in the pub last Friday who I can't even be bothered to make up a Motoring sounding job title for?

 

Hydrogen cars just went POP

22 August 2016
xxxx wrote:

Autocar, when you say insiders do you mean my journalist mate seating next to me in the pub last Friday who I can't even be bothered to make up a Motoring sounding job title for?

This story has been on bbc's news website for days.

Hard to say whether it is brexit or whether it's just that Vauxhall/Opel are struggling to make money on any car they sell and just using it as as convenient excuse.

Still, thanks to all the inbred flag waving racists, we're out now and businesses and consumers will have to stomach the consequences.

22 August 2016
Marc][quote=xxxx wrote:

....
Still, thanks to all the inbred flag waving racists, we're out now and businesses and consumers will have to stomach the consequences.

Typical elitist fascist talk disregarding the majority whose opinion doesn’t matter as much as their property and/or share portfolio

 

Hydrogen cars just went POP

22 August 2016
Just to remind xxxx, the vote was 48% to 52%. Casting Remain as 'the elite' is ridiculous. Leave won on a narrow majority but hardly a large mandate.

22 August 2016
scrap wrote:

Just to remind xxxx, the vote was 48% to 52%. Casting Remain as 'the elite' is ridiculous. Leave won on a narrow majority but hardly a large mandate.

Yea it's like the original comment saying 52% are " inbred flag waving racists", you forgot to comment on that.

 

Hydrogen cars just went POP

22 August 2016
xxxx][quote=Marc wrote:
xxxx wrote:

....
Still, thanks to all the inbred flag waving racists, we're out now and businesses and consumers will have to stomach the consequences.

Typical elitist fascist talk disregarding the majority whose opinion doesn’t matter as much as their property and/or share portfolio

Awsome, never been called a facist before.

22 August 2016
Marc][quote=xxxx wrote:

Still, thanks to all the inbred flag waving racists, we're out now and businesses and consumers will have to stomach the consequences.

Well that's an amazingly narrow minded and also racist view of things, just deal with the fact that there were more people with a different opinion to yours who voted! It is amazing how democracy works isn't it! I have had to live through 13 years of rule by the Labour party, during those 13 years family members struggled to get government help when needed because they simply had a job or wasn't of a minority, you didn't see me kicking up a stink and protesting about it, I cannot stand Tony Blair and would have rather cut my eyes out than vote for him, but the people I voted for lost, so guess what I did, DEALT WITH IT! Got on with life and looked forward to when I could vote the fools out! Back to the article, GM produce awful cars that are priced the same as competitors who's cars are MUCH better, there is no wonder they aren't performing as well as they should while they keep pumping out rubbish like the Insignia or getting a Fiat Doblo and re-badging it a Combo! There is only so much polish a turd will absorb!

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