Following a further 250 job cuts from Vauxhall's UK workforce, its parent company and trade union boss met to devise a plan for recovery

A plan to save the future of Vauxhall's UK production plants is being drafted up by its parent company, the PSA Group, and Unite, the trade union that represents its workforce.

This morning, PSA boss Carlos Tavares met with Unite general secretary Len McCluskey to discuss a plan "to study how to regain the competitiveness of the Vauxhall manufacturing sites in the UK".

PSA said the leaders, whose meeting took place just two weeks after Vauxhall's second phase of job cuts at its Ellesmere Port plant was announced, are working alongside each other to "build [Vauxhall's] industrial footprint" within the PSA Group "after years of degradation".

McCluskey said that “Tavares repeated his desire not to close UK plants" and that Unite is focused on safeguarding the UK plant employees. He stated that Unite would be prepared to "disrupt PSA’s UK market share if the company fails to support this loyal workforce".

McCluskey said that he will be "pressing business secretary Greg Clark to ensure that the Government does all it can to create the climate for PSA investment". He admitted ongoing uncertainty surrounding Brexit negotiations is hampering progress but said that he "remains optimistic".

PSA plans to make Vauxhall and Opel profitable by 2020

Vauxhall recently offered 250 members of its Ellesmere Port staff voluntary redundancies in a bid to reduce costs and improve efficiency at the site. This followed the first wave of cuts in October last year, with the total number of jobs Vauxhall plans to have removed from its Cheshire site by September 2018 amounting to 650.

Ellesmere Port employs 1800 of the company’s 4500 British workers. Vauxhall has begun a 45-day consultancy, as per legal requirements, in order to aid its departing employees with new opportunities.

Vauxhall said production of the Astra would continue at the facility but that production would be downgraded from operating two to one shift per day.

It was revealed last year that Ellesmere Port’s cost efficiency was lower than other plants within the group, which includes those used by its other brands, Peugeot, Citroën and DS.

PSA aims to return Vauxhall and Opel to profit by 2020.

Tavares said late last year that he has no intention to close any company factories during this process. He also revealed that Vauxhall and Opel would shift to using PSA platforms to enhance research and development sustainability.

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Comments
20

8 January 2018
What's that over there? Oh that, that's the writing on the wall.

8 January 2018

PSA are clearly gearing to shut down the UK plants. Best hope the UK workforce has is if JLR offer to take over the plant as these days they are the only real bright spot in UK car making.

8 January 2018
TStag wrote:

PSA are clearly gearing to shut down the UK plants. Best hope the UK workforce has is if JLR offer to take over the plant as these days they are the only real bright spot in UK car making.

10 years post Brexit, they'll not be manufacturing cars in the UK either.

8 January 2018

That doesn't make sense!!!

JLR sold 621106 cars worlwide in 2017, & only 138643 were sold in Europe.

So they could easily make that 138643 vehicles in their new Slovakian plant, & not be affected by Brexit!!!!!!!

PSA are also just using Brexit as an excuse to close everything in the UK. It's not the first time they've done that....................look what they did to Ryton!!!!!!! PSA say that Ellsmere Port's costs are the highest they have in Europe?????, even though the Pound has lost 20% of its value. Doesn't make sense does it?????

 

8 January 2018

Suggest you read up a bit on economics..

The pound has lost 20% of its value. This makes importing items (raw materials, components and finished goods) in other currencies more expensive.

9 January 2018
autoindustryinsider wrote:

Suggest you read up a bit on economics..

The pound has lost 20% of its value. This makes importing items (raw materials, components and finished goods) in other currencies more expensive.

and exporting them cheaper. Simple economics, read up on it.

typos1 - Just can’t respect opinion

22 January 2018
xxxx wrote:

and exporting them cheaper. Simple economics, read up on it.

You are right, in theory. But you forget that after the PSA takeover, Vauxhall cars will use more imported parts, such as the platform and engines. At the same time they can produce most of the required left-hand drive vehicles in their other European plants. Also, the UK market is shrinking.

8 January 2018
jagdavey wrote:

That doesn't make sense!!!

JLR sold 621106 cars worlwide in 2017, & only 138643 were sold in Europe.

So they could easily make that 138643 vehicles in their new Slovakian plant, & not be affected by Brexit!!!!!!!

PSA are also just using Brexit as an excuse to close everything in the UK. It's not the first time they've done that....................look what they did to Ryton!!!!!!! PSA say that Ellsmere Port's costs are the highest they have in Europe?????, even though the Pound has lost 20% of its value. Doesn't make sense does it?????

 

!!!!!?!???¿??????????.
PSA have no intention or interest in manufacturing vehicles in the UK. Regardless of Brexit. Ellesmere Port is a mess and a money pitt.

I know of a large Accountancy firm that is currently running Brexit scenarios for a large UK based but not owned passenger vehicle manufacturing company. Every scenario is quite grim. This is a company that already had long term plans to pull lower margin model lines from the UK.

8 January 2018
jagdavey wrote:

That doesn't make sense!!!

JLR sold 621106 cars worlwide in 2017, & only 138643 were sold in Europe.

So they could easily make that 138643 vehicles in their new Slovakian plant, & not be affected by Brexit!!!!!!!

PSA are also just using Brexit as an excuse to close everything in the UK. It's not the first time they've done that....................look what they did to Ryton!!!!!!! PSA say that Ellsmere Port's costs are the highest they have in Europe?????, even though the Pound has lost 20% of its value. Doesn't make sense does it?????

 

My friend, every plant has its own line of vehicles to produce. Its not like they could suddenly make all models from RR SVR to XE in Slovakia. Whether you like it or not Brexit is doing some considerable damage to every industry in Britain right now. I, like you and most of the others hope it will all change soon. chill. 

If you don't look back at your car after you parked it, you own the wrong car.

8 January 2018

"No intention" of closing any factories. Read into that. It probably means the plant will close if things worsen due to factors beyond their control. Brexit could be the nail in the coffin.

I was thinking that a "least bad" outcome for Ellesmere Port in a Breixt scenario could be as a CKD assembly plant. But then that makes little sense. Opel/Vauxhall cars simply don't retail at high enough values to make that worthwhile.

More likely is that the Vauxhall brand dies with the plant, that PSA concentrate all Astra production at Gliwice, and that customers foot the bill for the increased cost of imported goods.

Unless of course, people see sense and clamour for a second EUREf on the final deal, and vote Remain.

 

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