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PSA Says Brexit Will Determine Future for U.K. Plant
PSA Group says its decision about making the next-generation Opel/Vauxhall Astra in England will depend on favorable tariff terms when the U.K. exits the European Union.
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PSA Group says its decision about making the next-generation Opel/Vauxhall Astra in England will depend on favorable tariff terms when the U.K. exits the European Union.
The company’s huge Ellesmere Port plant in England produces the current Astra now. The new model will go into production in 2021.
Reports two months ago indicated PSA was considering a plan to move as much as 75% of Astra output in England to its factory in Russelsheim, Germany. PSA confirmed earlier today that Russelsheim will build the next-generation Astra.
Ellesmere’s workforce has already been cut by about 800 people since PSA acquired the factory from General Motors Co. two years ago. PSA is likely to shut down the facility if Brexit, currently scheduled for the end of October, fails to preserve duty-free trade with the EU.
The French carmaker warned last year that it would decide by 2020 whether to retool Ellesmere, which has been operating well below capacity for nearly two years, or abandon the plant.
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