A plan to save the future of Vauxhall's UK production plants is being drafted up by its parent company, the PSA Group, and Unite, the trade union that represents its workforce.
This morning, PSA boss Carlos Tavares met with Unite general secretary Len McCluskey to discuss a plan "to study how to regain the competitiveness of the Vauxhall manufacturing sites in the UK".
PSA said the leaders, whose meeting took place just two weeks after Vauxhall's second phase of job cuts at its Ellesmere Port plant was announced, are working alongside each other to "build [Vauxhall's] industrial footprint" within the PSA Group "after years of degradation".
McCluskey said that “Tavares repeated his desire not to close UK plants" and that Unite is focused on safeguarding the UK plant employees. He stated that Unite would be prepared to "disrupt PSA’s UK market share if the company fails to support this loyal workforce".
McCluskey said that he will be "pressing business secretary Greg Clark to ensure that the Government does all it can to create the climate for PSA investment". He admitted ongoing uncertainty surrounding Brexit negotiations is hampering progress but said that he "remains optimistic".
PSA plans to make Vauxhall and Opel profitable by 2020
Vauxhall recently offered 250 members of its Ellesmere Port staff voluntary redundancies in a bid to reduce costs and improve efficiency at the site. This followed the first wave of cuts in October last year, with the total number of jobs Vauxhall plans to have removed from its Cheshire site by September 2018 amounting to 650.
Ellesmere Port employs 1800 of the company’s 4500 British workers. Vauxhall has begun a 45-day consultancy, as per legal requirements, in order to aid its departing employees with new opportunities.
Vauxhall said production of the Vauxhall Astra would continue at the facility but that production would be downgraded from operating two to one shift per day.
It was revealed last year that Ellesmere Port’s cost efficiency was lower than other plants within the group, which includes those used by its other brands, Peugeot, Citroën and DS.
PSA aims to return Vauxhall and Opel to profit by 2020.
Tavares said late last year that he has no intention to close any company factories during this process. He also revealed that Vauxhall and Opel would shift to using PSA platforms to enhance research and development sustainability.
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Aircraft Carrier
I can't claim to know b$gger all about global muti-nationals, international trade and such like but I am very aware that the media seems to be "pro-europe" and anti-brexit. As far as I am aware, we are a net importer of European cars (German mainly) yet export hgh value (high margin) luxury vehicles globally. If Brexit comes with no trade deal and tariffs are applied to imports and exports who sufffers most? The luxury UK manufacturers whose customers won't be troubled another 10% on the purchase price or Joe Public / Fleet Buyer who will wince at the slightest increase? The French manufacturers have always been at the mercy of the French government and unions and take advantage of more lax employment laws in the UK (Witness the closure of Ryton), the threat of pressure from Unite is laughable, bet they drive around in Astras - 5 series and e-classes is my guess..... hypocrites
Clearly Astra sales across
Clearly Astra sales across Europe are the main issue, they wouldn't be cutting production in Ellesmere Port if sales in mainland Europe were still strong. I don't see the exchange rate making that much difference, surely the gains and losses on the Astra production would even themselves out in terms of exports?
Why close Vauxhall?
It's only a set of badges after all... Few of current range are built in UK.
So, seems highly likely UK manufacture will cease, and future Vauxhall/Opels will be built alongside PSA products and imported like the other Vauxhalls are.
As an aside, it would help if the UK press could be a little more positive. The current Astra is a decent car. Close enough to VAG to be worth trumpeting as worth buying to help British workers.