Following on from our Vauxhall Cuts 250 Jobs story in last week; more jobs could again be in jeopardy at Vauxhall’s Ellesmere Port plant, as the PSA Group announces imminent discussion on the site’s future.
The Group has already begun cutting jobs, which has sparked a number of protests from unions. Group CEO Carlos Tavares recently told Detroit press that production costs at the site on North Road sit at twice as much as its French plants.
Highlighting a not-yet-confirmed hard Brexit, Tavares touched on the higher tariffs and increased export costs that could be introduced, comparing the Ellesmere Port site’s efficiency levels on par with where PSA was four years ago when he began his turnaround of the French car maker, saying: “What counts is to bring (UK) plants to the level of cost and quality that is the same as Continental Europe.”
Tavares was in Detroit to discuss Group plans to re-enter the US market, with a view to offer 40 electric vehicles across its five-strong brand line-up (Peugeot, Citroen, Opel, Vauxhall and DS) worldwide by 2025.
Also mentioned was Group thoughts on a potential alliance with Ford Latin America. Ford Motor Company recently announced plans to explore new avenues for its less successful Latin America market.
The Group plans to discuss the future of the Ellesmere Port site in the coming weeks. PSA acquired the site when it took over Opel and Vauxhall from General Motors last year.