Vauxhall owner’s pledge to make new van model in UK

THE French owner of car giant Vauxhall is to increase van production in the UK in a major vote of confidence in Brexit Britain.

PSA Group, which also owns Peugeot and Citroen, will today unveil plans to build a new type of van at the Vauxhall plant in Luton.

The investment will come as a relief to thousands of Vauxhall workers whose future was left uncertain after the firm was bought by PSA last year. The carmaker has 1,500 staff in Luton, where it builds the Vivaro van.

It will also be a boon for Theresa May amid doom-laden warnings that carmakers are planning to shift operations overseas after Brexit.

PSA chief executive Carlos Tavares will unveil the plans with Business Secretary Greg Clark in Luton today.

It follows months of speculation about the future of the UK’s Vauxhall plants after Paris-based PSA bought the European arm of American General Motors for £1.9billion last year.

The controversial deal gave PSA control of Vauxhall in the UK and Opel on the Continent – making it Europe’s second largest carmaker behind Volkswagen.

Speaking at the Geneva Motor Show last month, Mr Tavares warned that Brexit posed a threat to its British operations. ‘We cannot invest in a world of uncertainty,’ he said.

There are still fears for the future of the Vauxhall factory in Ellesmere Port, Cheshire, where it builds the Astra. PSA has already announced plans to cut 700 jobs.

A Business Department spokesman said: ‘The Government is continuing to engage with PSA on their future strategic plans for the UK.’ PSA declined to comment.

The boss of easyJet yesterday dismissed fears that flights would be grounded after Brexit, saying he is ‘confident’ Britain will reach an aviation deal with the EU. Johan Lundgren’s comments were in marked contrast to those of Ryanair boss Michael O’Leary, who has threatened to ground flights post-Brexit.