PSA Group boss Carlos Tavares has reiterated his belief that Vauxhall could be “the only survivors” of the British car industry following Brexit.
The threat of a no-deal Brexit has been a major concern for car firms, due to the potential impact it could have on supply chains. Both Toyota and BMW suggested during the Geneva motor show that they could shift production out of the UK.
Tavares has previously warned that Brexit could potentially lead to the closure of Vauxhall’s Ellesmere Port plant. But speaking at Geneva, he emphasised that Vauxhall’s British heritage could be an advantage, and might leave its Ellesmere Port and Luton plant as the only remaining volume vehicle factories in the UK.
“We are ready for both scenarios,” said Tavares, adding: “no deal is not acceptable.”
He continued: “We love to make cars in the UK. But can we do it without penalising other [PSA Group] employees? If the politicians do not come up with a deal, we are introuble. But Vauxhall is doing the right things. We will decide after Brexit.”
Tavares first suggested that Brexit could be an 'opportunity' for Vauxhall during a press conference on PSA’s 2018 results, when it was announced Vauxhall-Opel had posted a profit for the first time in 20 years
He admitted that Brexit presented a “headache” in terms of supply chain and that the firm was already positioning inventory to try and cope with such a scenario – but added his belief that Vauxhall could be positioned to benefit.
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“One direction is to say it is going to be a headache in terms of supply chain,” said Tavares. “We have been taking some decisions on that matter and moving inventories to where they should be if that time-lag is going to appear.
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Let me explain it for people
Let me explain it for people who don't understand. If there is no deal, it means that anything that leaves these shores and goes to an EU country, the EU will impose a tariff (tax) on it. So any Vauxhall car being built here will cost extra to anyone who buys it - who lives in the EU. It's an 'import tax' in effect. It makes the purchaser pay extra for having the temerity to buy something outside of the crazy EU club. Now, we can reciprocate. We can say that anything made in the EU reaching these shores gets 'taxed' the same. Stupid, isn't it? It would be better to have zero tariffs. Anyway, such is life. But the problem is that people think a no-deal is the end of the world. It isn't, it justs means that some companies MAY leave the UK (they may not). A no-deal allows us to keep our £39 billion (which the EU desperately needs) and we simply revert to World Trade Organisation rules - which covers the majority of of trading already! NO ONE said that there would be no disadvantages to leaving the EU, but as we already know, there are lots of advantages, and anyway it's what people voted for. A few companies leaving (if they did) isn't going to do much to our economy, since we already have the lowest unemployment since 1975, and we've never had so many people employed...ever. Tax receipts (a barometer of how a country is doing) are up 14%, and European companies have DOUBLED their investment SINCE THE VOTE!!! in the UK despite the upcoming brexit. The fact is that Britain is doing really well, and a few companies leaving would not put a dent in that.
Optimism.
1. They tarted up the books to show a profit.
2. We haven't left the EU yet.
I reserve judgement until sometime after March 29th - I don't think the world will cave in but it will be a slow burner.
I have no negative feelings
I have no negative feelings towards vauxhall and whilst they're french owned some are british cars as here is where they're made. The issue I have with owning a vauxhall is my local dealer is a waste of space.