Reports suggest PSA CEO Carlos Tavares has earmarked a site in Europe to build Vauxhall/Opel Astra if trading conditions deteriorate in the UK

PSA has threatened to pull production at Vauxhall’s Ellesmere Port plant and move it to mainland Europe if Brexit causes a downturn in profitability, according to reports.

Speaking to the Financial Times, the Group’s chairman Carlos Tavares says it has “an alternative to Ellesmere Port”, said to be located in Southern Europe. 

“Frankly I would prefer to put it [the Astra] in Ellesmere Port but if the conditions are bad and I cannot make it profitable then I have to protect the rest of the company and I will not do it,” Tavares told the FT. 

The remarks are the strongest made so far by Tavares, who said last week that a no-deal Brexit “cannot be considered” and would have significant impact on the car making group. In June, PSA announced it would ready the Ellesmere Port plant, near Liverpool, for the next-generation Astra to be built in 2021. However, that commitment depended on the final terms of Britain’s exit from the European Union.

A proposed move to Europe would almost certainly lead to the closure of Ellesmere Port, which employs more than 1000 people and has been established since 1962. The Astra has been produced there since 1981.

New Prime Minister Boris Johnson has take a hardline stance on the UK’s exit from the EU, slated for 31 October whether a deal is struck or not. If there is no deal, it would trigger both increased customs checks and tariffs for importers. “For us it’s quite simple – we need visibility on custom; that’s all,” Tavares said. 

Ellesmere Port is the most vulnerable of the UK’s car making facilities from a trade issue perspective - 80% of production there is exported to mainland Europe and about 75% of the components to build the cars are imported from there. 

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29 July 2019

Prepare yourselves for all the delusional gammon flooding the comments section with cry’s of “project fear” and “get it done Boris”. Over 1000 people losing their jobs is merely another coincidence, nothing to do with Brexit at all. Nope. 

29 July 2019
BMPF wrote:

Prepare yourselves for all the delusional gammon flooding the comments section with cry’s of “project fear” and “get it done Boris”. Over 1000 people losing their jobs is merely another coincidence, nothing to do with Brexit at all. Nope. 

I was away to say the exact same thing!

Dear Autocar website designers,

I understand your need to bring revenue in with advertising. However, can you do it in a way that makes your site usable please?

Thanks

29 July 2019
BMPF wrote:

Prepare yourselves for all the delusional gammon flooding the comments section with cry’s of “project fear” and “get it done Boris”. Over 1000 people losing their jobs is merely another coincidence, nothing to do with Brexit at all. Nope. 

This plant is closing. There have been plans to close this facility for several years. 

The truth will out once the BREXIT excuse has been used. 

Maripon

29 July 2019
BMPF wrote:

Prepare yourselves for all the delusional gammon flooding the comments section with cry’s of “project fear” and “get it done Boris”. Over 1000 people losing their jobs is merely another coincidence, nothing to do with Brexit at all. Nope. 

Gammon flooding? https://en.wikipedia.org/wiki/Oshawa_Car_Assembly

In 2018 GM announced the closure of a number of facilities in the USA and other parts of the world. Of course you won't believe it but I've included a link for their Canadian facility.

Here's another that might interest you: https://www.eurofound.europa.eu/it/publications/article/2006/vauxhall-announces-job-losses-at-ellesmere-port-plant

13 years ago it tells you of job losses and night shift ending. Ironically, it also refers to the closure of the Peugeot plant in Coventry with 2300 job losses. Thru the years, they moved production of models made in Ryton back to mainland Europe.

GUESS WHAT GUYS - Canada ain't part of the EU and there was no such word as Brexit in 2006.

Coincidence? YES.  The trouble with some remoaners is whenever history or economics is mentioned they immediately bury their heads in the sand.

29 July 2019
scotty5 wrote:

Gammon

Forgot to mention Peugeots decision to close their UK plant(s) and move production back to mainland Europe (exactly what Vauxhall are saying) was when the UK was part of the EU.

And those 2300 job losses and shutdown of night shift was at the same Ellsmere Port facility - when we were part of the EU.

If you'd accepted the referendum result rather than fight it, Boris Johnson and his gang of merry men would not have been in 10 Downing Street.

29 July 2019
scotty5 wrote:

scotty5 wrote:

Gammon

Forgot to mention Peugeots decision to close their UK plant(s) and move production back to mainland Europe (exactly what Vauxhall are saying) was when the UK was part of the EU.

And those 2300 job losses and shutdown of night shift was at the same Ellsmere Port facility - when we were part of the EU.

If you'd accepted the referendum result rather than fight it, Boris Johnson and his gang of merry men would not have been in 10 Downing Street.

 

Er, the Withdrawal Agreement was blocked by the Brexiters, no?

29 July 2019
scrap wrote:

Er, the Withdrawal Agreement was blocked by the Brexiters, no?

It was blocked by all camps. The point is if those who were still shouting to scrap Brexit had supported the withdrawal agreement, the the industry would have the deal they so much crave.

What's the phrase - be careful what you wish for?

29 July 2019
BMPF wrote:

Prepare yourselves for all the delusional gammon flooding the comments section with cry’s of “project fear” and “get it done Boris”. Over 1000 people losing their jobs is merely another coincidence, nothing to do with Brexit at all. Nope. 

 

Depressingly, you are absolutely right.

They also use CAPITALISATION for added effect.

 

29 July 2019
BMPF wrote:

Prepare yourselves for all the delusional gammon flooding the comments section with cry’s of “project fear” and “get it done Boris”. Over 1000 people losing their jobs is merely another coincidence, nothing to do with Brexit at all. Nope. 

I forgot about that other Autocar article - the 2019 Astra - a car which was once never out of the top 10 ( top 5 probably) best selling cars in the UK, but has since fallen out of favour. When's the last time you saw a 19 plate Astra?

Convenient to blame Brexit then? Where are the SUV's like the Grandland X and Mokka which are selling in numbers here in the UK made? If you were in charge of PSA, why would you keep a plant that produces a car that doesn't sell well open?

29 July 2019

THAT JUST GET HIM TO SHUT THE ---- uP AND IF IT CLOSED USE THE TAXES GENERATED TO BUILD ANOTHER JLR UK FACTORY OR BUY A DISUSED ONE AND CALL IT ROVER ,WE GET SICK OF SCAREMONGERING,THE UK IS A SOFT TOUCH AS IT IS EASIER AND CHEAPER TO CLOSE A FACTORY THAN ALMOST ANYWHERE ELSE IN EUROPE.

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