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It is a loss making concern. Hence offloaded to PSA. There is over-capacity in the market, too many cars, not enough buyers. Life is on hold due to Brexit plus
by Theodores 8y ago
It is a loss making concern. Hence offloaded to PSA. There is over-capacity in the market, too many cars, not enough buyers. Life is on hold due to Brexit plus there are unions, politicians and the media to manage.
They have cut the shifts from two to one, let go of a few hundred workers, so, as of now it is half closed already.
There is another Opel plant in Poland making the Astra, the Astra being the only model they make there. The next Astra model comes along in 2020, which is two years away. There is no money on the table from the UK government to make this happen.
The plant in Poland is brand new, Ellesmere Port is vintage. Wages are cheaper in Poland, Poland will also have better access to the EU market if Brexit happens. Brexit is happening unless there is some fluke event that obliterates parliament and miraculously restores sanity.
The engines, transmission and much else that lurks beneath the Astra all comes from Europe, none of that is made in the UK. In Poland these important sub-assemblies can come from over the border in Germany, no post-Brexit WTO tariffs needed.
Everyone wants crossovers these days, the Astra as it exists is at the end of the model life, is not a crossover and limps on in the UK market because it is notionally British.
Luton is a different story, vans come from there and PSA like their vans. Right now their main van is a joint venture with Renault, effectively from the purchase of GM Europe PSA get to where they need to be with vans.
There are dealer networks as well as factories, the former, particularly with vans, is of interest to PSA.
Renault have ended the joint venture with PSA, they now have a partnership going with Mercedes. The depths of this I don't know, they share engines and South America is a big part of the plans.
Here is an earlier story about how Ellesmere Port must 'shape up', note how the Corsa (made in Spain) already has plans laid out for the new Corsa and electric Corsa. There is no 'electric Astra' mentioned. The 'electric Astra' (if it ever exists) won't be designed from scratch for some people in The Wirral to put together with their existing screwdriver operation, you can good-as-guarantee it will be an electrified PSA model with a different badge on it, if at all.
https://www.autocar.co.uk/car-news/motor-shows-geneva-motor-show/vauxhalls-ellesmere-port-plant-must-close-cost-gap-survive https://www.autocar.co.uk/car-news/motor-shows-geneva-motor-...
- benj111 8y agoYour link just seems to mirror mine, and came out at virtually the same time. The only mention of job cuts at Ellesmere port that I could find are 400 jobs last year and sales are down all over Europe so even if shifts were cut I dont see what your point is. Look. The first paragraph of your first post claimed German manufacturers sold no cars in the Uk, didn't manufacture there, and didn't source any parts from there. That quite obviously isn't true so I challenged it. Your followup response suggests a factory is going to be closing, when that isn't really true. If you have a point to make you'll make it much better by not surrounding it by things that aren't accurate.
- Theodores 8y agoYou misread me, the brands that are not British are not exempt from Brexit fallout with that being regardless of whether they sell anything in the UK, regardless of whether they have components coming from the UK and regardless of whether they have assembly plants in the UK. You read into that something else. Regarding Ellesmere Port, there is no plan for it after the current Astra model goes. This was decided a long time ago but the deal is to keep it open until 2020 and the new owners have not renegaded on the deal. https://www.bbc.co.uk/news/business-26342093 https://www.bbc.co.uk/news/business-26342093 It is an old plant and it is as good as gone. There is no point trying to argue otherwise unless you work there.
- benj111 8y agoYou're right I did mis read you. I took you to mean there were no German companies with manufacturing in Britain. And none with any customers. Re Ellesmere port. We will have to see. Brexit is a massive unknown. But hopefully wont be by 2020 (ha). But 2020 will probably be an election year so I'm not sure that the Torys will want the factory closing 'due to Brexit', so I'm sure some big juicy 'grants' will be offered.