Vauxhall owner "able to move Astra production from UK"

Managing director of Vauxhall owner PSA says it could move all production from Ellesmere port factory if Brexit makes it unprofitable.

Carlos Tavares told Financial Ganger where the car manufacturer has alternatives to the plant that it can use.

The move is likely to lead to the closure of the site, the FT said, and threatened 1

It would leave Vauxhall's Luton-based van as the latest presence in the United Kingdom.

"Honestly, I would prefer to put it [the Astra car] in Ellesmere Port, but if conditions are bad and I can't make it profitable, then I have to protect the rest of the company and I will not," Tavares said to the paper.

"We have an alternative to Ellesmere harbor."

& # 39; Final Brexit Terms & # 39;

In June, the carmaker announced plans to produce the next generation of Astra, its best-selling car, at Ellesmere Port and another factory in Germany. At the time, it warned that the decision depends on the final Brexit terms.

However, Tavares has now moved on, indicating that the company has another facility in mind should the UK leave the EU without a deal.

In an official statement on Monday, the PSA later confirmed that the group was still looking to produce the next-generation Astra at Russelsheim and Ellesmere ports.

However, it warned that the final decision on the role of Ellesmere port facility would be contingent on "the final terms of Britain's departure from the European Union". [19659015] Image copyright
Getty Images

"PSA Groupe has put in place a comprehensive contingency plan & # 39; no-deal & # 39; covering human resources, taxation, customs, logistics, production, regulation, supply chain and IT, "added.

The company said it would closely monitor political development and engage with politicians to understand the various potential Brexit results.

This weekend, Michael Gove, who has been indicted by Prime Minister Boris Johnson, prepared to leave the EU without a deal, said the government is now "working on the assumption" of a Brexit without a deal.

Mr Gove said his team was still aiming to come to an agreement with Brussels, but wrote in the Sunday Times, he added: "No deal is now a very real prospect."

& # 39; Not an option & # 39;

The Confederation of British Industry has warned the government that neither the UK nor the EU is ready for a Brexit without a deal. [19659005] And the automotive lobby group warned the Society of Motor Manufacturers and Traders on Friday that "no-deal Brexit is simply not an option."

Vauxhall did not immediately respond to a BBC comment request. [19659005] Car production has been declining in the UK over the past year, amid growing industry concerns for a Brexit deal.

The UK car industry has suffered a number of blows in recent months, with Honda announcing that they will close the Swindon plant in 2021.

Ford also said that the Bridgend engine plant in South Wales would close in September 2020 with the loss of 1 700 jobs.

Japanese automakers, including Nissan, have said that Brexit uncertainty does not help them "plan for the future".

Earlier this year, Nissan chose to build the next X-Trail model in Japan, rather than Sunderland.