[Global Network Comprehensive Report] According to the “Automotive News” European version, informed sources revealed that considering the decline in sales caused by Brexit, Vauxhall may close Ellesmere Port and Luton’s two after the Brexit Home factory.
It is reported that Vauxhall’s parent company PSA Peugeot Citroen (PSA) is considering a decision that after the UK exits the EU, if the car demand declines, PSA will close one or two of the factories. PSA and its subsidiaries currently employ approximately 3,000 people in the UK. The Ellesmere Port facility is responsible for the production of the Astra, but the plant has cut 650 jobs. The Luton plant produces medium-duty trucks and will start producing the new Vivaro trucks next year. PSA also invested 100 million euros in the plant.
The decline in the popularity of diesel vehicles, coupled with the Brexit, led to a decline in UK car sales this year. The number of new car registrations fell by 7.2%, and PSA was also affected – according to automakers and trade associations (SMMT) data, Vauxhall car sales fell by 11%, Citro龙n fell by 3.6%, and Peugeot fell by 2.8%. About 80% of the cars produced in the UK are exported, half of which are currently exported to the EU, and the UK also accounts for 10% of PSA’s global sales.
In addition to considering closing the factory, the PSA is said to be working on other Brexit related plans. The PSA considered that if the Brexit negotiations did not reach an agreement, the spare parts would be shut down in the summer. However, despite speculation, PSA has so far refused to comment on its Brexit plan. “We don’t want to comment at this stage on the Brexit process and its group’s assessment,” Vauxhall said in an e-mailed statement to the European version of Automotive News. “We work in a flexible way with several solutions. The solution to solve different situations.”
Post time: Nov-23-2018