Tuesday, October, 15, 2019 03:14:26

The move would result in the site’s closure, threatening a loss of around 1,000 jobs in the U.K.

French automaker and owner of Vauxhall Motors, Groupe PSA is reportedly planning to move all production from its Ellesmere Port factory in Cheshire, England. According to sources, the move is likely to materialize if Brexit impacts Vauxhall’s profitability.

Speaking on the issue, Carlos Tavares, CEO, Groupe PSA, said that the firm has substitutes for the Ellesmere Port plant which it could move if Brexit worsens the firm’s profits. He said that the organization would prefer to continue its work in Ellesmere, but if conditions continue to go downhill then it would have no options but to move its plant elsewhere.

According to Michael Gove, Chancellor of the Duchy of Lancaster, the government is considering the option of a no-deal Brexit. He claims that his team is working on developing an agreement with Brussels but, no deal seems to be a potential prospect.

For the record, Mr. Gove is charged by Prime Minister Boris Johnson for preparing the deal which would help the UK leave EU. However, the government has been cautioned by the Confederation of British Industry which claims that neither EU nor the UK is ready for a no-deal Brexit. Similarly, the Society of Motor Manufacturers and Traders have recently warned the government that no deal Brexit is not an option.

As per reports, automobile production has been falling in the UK since 2018. Moreover, with Honda announcing the closure of its Swindon plant in 2021, the UK’s automobile industry has been subject to a series of blows lately. Additionally, Ford’s announcement of shutting its Bridgend engine plant in September 2020 is also estimated to impact the industry with a loss of 1,700 jobs, cite reports.

As for Japanese car manufacturers, including Nissan, Brexit ambiguity is not helping them to plan ahead. In fact, earlier in 2019, Nissan chose to build the next X-Trail model in Japan, instead in Sunderland, claim reliable sources.

Source Credit: https://www.bbc.com/news/business-49146645