The future Vauxhall’s Ellesmere Port assembly plant remains unclear, but workers received poor news earlier this week. PSA Groupe, Vauxhall and Opel’s new owner, announced it will eliminate 400 jobs from the UK-based production facility.
In response, the plant’s union, Unite, called for the UK government to send a “clear signal” of support for the UK automotive industry, according to Insider UK. The Ellesmere Port plant employs 1,800 workers presently and builds the Vauxhall Astra. PSA Groupe agreed to keep the plant open until 2021 but will decide the facility’s future post-2021 by the end of this year.
By 2021, the next-generation Astra will report for duty and it will ride on a PSA platform to consolidate parts and move away from General Motors intellectual property. By then, the Ellesmere Port plant may not be the most attractive facility to produce the car. PSA Groupe previously noted its plants seem more efficient than the former GM facilities in Europe. PSA’s Sochaux, France, facility reportedly has ample capacity to take on the next-generation Astra.
PSA CEO Carlos Tavares said he couldn’t commit to a Vauxhall strategy until the UK clarifies its future relationship with the European Union.
The UK voted to exit the EU last year and has left many automakers looking for answers as future tariffs could be implemented. Many suppliers remain in the EU, while Brexit paints unclear pictures for future trade relations.
Comments
What surprise!
Yes it was predictable. What is interesting is that, according to Tavares, it had nothing to do with BREXIT and was based on the plant efficiency. This is more worrying as according to the former GM Europe Ellesmere Port was one of the, if not the, most efficient plants they had. PSA efficiency metrics maybe different to GM but on the basis of what is happening at Ellesmere Port then I would expect job cuts at Opel plants in Germany to be a much bigger percentage of the workforce. However, Tavares is looking at one specific area of efficiency, there is also the issue of quality, in this area Vauxhall / Opel are significantly better than anything Peugeot or Citroen produce.
No, the most efficient plants are in Germany and Poland. And Tavares specifically stated that UK production is completely dependent on trade parity with the EU.
Glwice definitely right up at the top but German plants don’t even come close. Since the post Tavares has now stated Opel plants in Germany are 50% less productive compared to PSA plants. In the statement regarding job cuts at Ellesmere Port Tavares specifically stated it had nothing to do with BREXIT
BREXIT fallout (the chickens are coming home to roost!)
Can’t see why the (neoliberal) UK govt would be interested in saving 400 or 1800 jobs for that matter, if the factory is inefficient and not modern enough to manufacture the next vehicle generation.
If General Motors attempted to do this.. the entire factory would probably strike and the British government would probably access some type of tax on GM; but under PSA rule, the Vauxhall workers know it’s a new dawn and 400 workers is just the beginning as the factory will stay open until PSA begins building cars for the Vauxhall brand.
Am I the only one to get a 403 “Forbidden” response from the insider.co.uk site for “Insider UK”?