Opel Blames Brexit for Production Cuts in Germany

General Motors Co.’s Opel unit says it will trim production of its Vauxhall-branded Corsa three-door hatchbacks and Insignia sedans through the remainder of 2016 because of slowing sales in the U.K.

Opel says the degree of cutbacks will depend on the behavior of the British market following the U.K.’s vote in June to exit the European Union. Some economists say overall car sales in England could shrink 20% if the economy there slumps into recession.

The Corsa and Insignia are produced at German plants in Eisenach and Russelsheim. The Corsa is England’s second-best-selling car, after the Ford Fiesta four-door hatch, according to the Society of Motor Manufacturers and Traders Ltd.

Several carmakers have warned that consumer uncertainty about Brexit is likely to hurt demand for new vehicles in the U.K. SMMT predicts full-year sales this year will reach 2.7 million units compared with 2.6 million in 2015. But the trade group says the U.K. must pursue open trade with the EU to prevent a decline next year and beyond.