Currently reading: PSA Ellesmere Port factory investment will hang on EU trade deal
Boss Carlos Tavares is 'eager to invest' in the Vauxhall plant, but says that tariffs between the UK and the EU could jeopardise his plans
Mark Tisshaw
News
2 mins read
3 March 2020

PSA boss Carlos Tavares remains “eager to invest” in Vauxhall’s Ellesmere Port factory should a suitable business case be made for it off the back of UK-EU trade deal talks.

However, should tariffs be imposed on cars or car parts then Tavares said the UK government would need to make the investment as it “would not be ethical” for PSA’s employees at profitable factories outside the UK to be paying for an arrears at Ellesmere Port, where the Astra is built, just to keep it running.

To that end, Tavares repeated his call for a free trade deal between the EU and UK. “If conditions of trade are positive, and there are no tariffs, then most of the investment would be made by PSA,” he said. “We don’t want to be a burden and want to bring wealth and value. But it is fair to ask the UK to create the business for this to fly.”

Tavares said PSA “respected and loved” its workers at Ellesmere Port, “but it was also time for the UK government to respect and love its people and support them. We’re trying to support them, and we’re really crossing fingers for good sense to prevail”.

A decision on whether or not Ellesmere Port will be one of two PSA plants to build the next-generation Astra hinges on the outcome of these trade talks.

Tavares said he was very happy with the overall performance of the Opel/Vauxhall business, and it had generated €1.1billion of profits last year at a margin of 6.5%. “I express thanks to and appreciate the efforts of all Vauxhall employees,” said Tavares.

On PSA’s wider production in general, Tavares said he hoped the firms plants in China could reopen on March 11 following government clearance after shutdowns caused by the coronavirus. For its European operations, some 300 of its 8000 suppliers come from China, and Tavares said that the firm was “looking at alternatives and so far have been successful”.

While production was holding up, keeping up consumer confidence to ensure demand remains would be the next phase of what the coronavirus brings, said Tavares.

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15

3 March 2020

No, no, no. This is not how it was supposed to work out. If we voted for Brexit then these companies would pack their bags and leave, they were not supposed to be Eager To Invest.

Carlos Tavares obviously hasn't been paying any attention to what the remoaners on here have been saying for the past 3yr.

3 March 2020
Scotty, you should read between the lines. What Tavares is saying is that if Brexit goes the way you extremists what it to go, the plant will shut down. It's called diplomacy language.
If 10% import fees will be added on the price then PSA (and others) will calculate where it makes more sense build the cars. If they sell more in the UK, they build them here and close (or reduce) manufacturing on the continent. If they sell more on the continent then they will build them there.

3 March 2020
Andrew1 wrote:

Scotty, you should read between the lines. What Tavares is saying is that if Brexit goes the way you extremists what it to go, the plant will shut down. It's called diplomacy language.
If 10% import fees will be added on the price then PSA (and others) will calculate where it makes more sense build the cars. If they sell more in the UK, they build them here and close (or reduce) manufacturing on the continent. If they sell more on the continent then they will build them there.

Stop reading between the lines and actually read the article. Tavares is saying if a no deal happens, then the government need to make up the cost for the investment much like they did for Nissan. However with large tariffs on all european cars, you watch how companies like ford/Volkswagen will be willing to buy working plants from the likes or Honda or PSA to build the cars tariff free here and maintain sales. Don’t be surprised to learn that PSA urgently invest as no deal becomes apparent as they will not want to loose sales for any brand so more then likely they will adapt ellesmore port to build uk versions of Peugeot, citreon and DS to replace the Astras not built for the EU.

BMW are apparently looking to move european MiNi sales to Ned-car while transferring uk 1 series/X1 sales to Oxford alongside the Mini to get around the tariffs. Mercedes have spoken about moving uk A class/GLA/CLA/GLB sales to Nissan plant as they are all cars based on Renault so will be a quick shift.

6 March 2020
So they will remove manufacturing capacity and pay 10% on every Astra they sell in the UK? Don't forget that during our membership of the EU Ford relocated UK car building to low wage economies some of which went to non-EU countries like Turkey, GM got rid of Luton, PSA ditched Ryton & Linwood. Despite being a significant member of the EU our employment laws allowed these closures whereas those of France & Germany were much more rooted in socialist ideology that prevent the relocation of production to low wage economies else suffer the wrath of the union collective.

The UK government needs to "grow a pair" and make Britain great again.....

3 March 2020

The whole thing is a giant waste of time and money. JLR will make cars for the EU market in Slovakia. BMW will make cars like the 1 series in the UK and MINIs in the Netherlands. Nissan will export from Japan for the EU market and make cars for the UK market only here. No one gains anything except costs.

Upsdes? Blue passports and 0.16% growth in trade with the US over 15 years and -8% with the EU according to our leave government. Whole exercise is pointless and makes us poorer. Oh and we won't be able to export our fish to the EU unless they get access to our waters. For the love of God why?

3 March 2020

I don't see why the government shouldn't be able to nationalise the plant if negotiations go south.

They won't, of course.

3 March 2020
TheBritsAreComing wrote:

I don't see why the government shouldn't be able to nationalise the plant if negotiations go south.

They won't, of course.

What would they make? Perhaps the could buy the Rover brand back and relaunch the metro?

3 March 2020
TStag wrote:

Perhaps the could buy the Rover brand back and relaunch the metro?

Perhaps they could buy the Vauxhall brand back and build the Astra.

6 March 2020
Nationalise to make what? We need to look forwards not backwards to "control economies" and state control. We are still, despite our own governments efforts,one of the largest markets on the planet. We should be setting rules not following them, if they want to sell here let us sell there or is that too simple?

3 March 2020

 Has he heard of it?

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