French to axe 400 jobs at UK Vauxhall plant
FRENCH car maker PSA is cutting 400 jobs from Vauxhall’s Astra plant in Ellesmere Port – less than three months after taking over the brand.
Workers are to be briefed this morning on plans to axe one quarter of the workforce by the end of the year to boost competitiveness.
The move heightens fears raised during the £1.9bn takeover about the future of Astra production at Ellesmere Port and further job cuts across Vauxhall and Opel, also bought by PSA, which employ about 4,500 in the UK.
And it comes despite intervention by Theresa May during the takeover to protect British jobs amid concerns roles would be moved abroad.
Last night PSA said while it was committed to Ellesmere Port, it was not yet in a position to consider longer-term investments. A Vauxhall spokesman said manufacturing costs at the plant were ‘ significantly higher’ than other PSA plants in Europe.
It is believed the fall in the pound has pushed up the costs of some materials, while demand for five- door family cars is falling.
A PSA spokesman added: ‘Vauxhall needs to adjust production volumes at its Ellesmere Port production facility to the current level of demand, to improve its performance and protect its future as the industry faces challenging European market conditions and a declining passenger car market.’
PSA bought the loss-making European arm of General Motors – which included Vauxhall and Opel – in August. Amid frantic lobbying from unions and government in the UK, it pledged to stick to GM’s existing production commitments in the UK.
That means it is committed to making the Astra in Ellesmere Port, Cheshire, until 2021, while production of the Vivaro van in Luton will continue until 2025.
During a phone-call in February with PSA chief executive Carlos Tavares, Theresa May stressed the importance of manufacturing in the UK.
According to the company at the time, Tavares ‘expressed his willingness to develop further the iconic Vauxhall brand for the benefit of its faithful customers’.
The four millionth Vauxhall Astra rolled off the production line at the Ellesmere Port factory in September. The Astra is the sixth most popular new car for UK motorists this year, with more than 34,000 registered between January and July.