Brexit Bites – PSA Announces 400 Vauxhall Job Cuts Already

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1 / 4 of jobs are set to be lower at Vauxhall’s Ellesmere Port manufacturing unit in Cheshire.

The PSA Group has confirmed that 400 jobs are to be lower at Vauxhall’s Ellesmere Port manufacturing unit in Cheshire. The corporate owns French automakers Peugeot and Citroen, and acquired Opel and Vauxhall in August from U.S. producer Basic Motors. 

PSA says that “difficult European market situations and a declining passenger automotive market” are accountable for the information, which can see voluntary layoffs being launched because the manufacturing unit strikes to a single-shift manufacturing schedule. The manufacturing unit has additionally been warned that it wants to enhance its efficiency if it desires to proceed producing the Astra when the present mannequin’s run ends in 2021.

Motor1 reported final week that UK manufacturing of the Vauxhall Astra was doubtful after the French firm’s CEO Carlos Tavares introduced that unspecified new mannequin manufacturing would start at French factories in 2020/21.

Vauxhall Astra Ellesmere Port 250000

Latest reviews have urged that the prospect of a troublesome Brexit is weighing on the minds of decision-makers on the firm, and that transferring manufacturing out of the UK would imply fewer problems, decrease construct prices, and avoiding troublesome tariffs that might be slapped on British-made items.

Solely 25 p.c of the elements used within the manufacturing of Astras at Ellesmere Port come from inside the UK, which means the meeting line is closely depending on EU imports. 

The UK is the largest marketplace for Vauxhall, however gross sales figures within the first half of 2017 dropped by a dramatic 20 p.c, as consumers have held off on massive purchases due to financial fears. Vauxhall has additionally didn’t capitalize on market modifications as diesel turns into much less common and gross sales of gasoline-hybrid and absolutely electrical vehicles proceed to rise.

Vauxhall Astra at Ellesmere Port

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