GM giving up on Vauxhall and Opel in Europe

[motoukenin]

Vauxhall future: Peugeot 'takes pride' in not closing plants

Can we blame Brexit? I'm sure we can, over to the expat snowflakes...

They did say that since the pound dropped its cost them 325 million quid more to buy in parts from abroad, so yes would say Brexit has contributed.

This company has never made any profit for a long time and when it gets sold off the pension liability of 1 Billion will stay with GM in the US or more likely a separate company that will suddenly go bust one day.

Not sure if Peugeot will keep the plants open in the UK as its much easier to sack a UK employee than one in Germany or France, so could be immaterial this being a Brexit issue anyway.

[sal]

surprised Drive by wire hasn't taken over making LH/RH drive just a manufacturing option.

It sort of is a manufacturing option, the UK plants produce both Vauxhall(RH) and Opel(LH) Astra etc. in the same plant.

[vetran]

Yup agree with the above manufacturers will consolidate and the UK will become the centre for left hand drive cars and the rest of the EU will focus on right hand drive cars.

surprised Drive by wire hasn't taken over making LH/RH drive just a manufacturing option.

[BlasterBates]

Yup agree with the above manufacturers will consolidate and the UK will become the centre for left hand drive cars and the rest of the EU will focus on right hand drive cars.

[sal]

I highly doubt the plants will be relocated to France or w/e. As it will be cost cutting exercise, so either plant closures or downgrades.

The problem is that the Opel/Vauxhall arm is loss making - the new owner will have to make cuts, somewhere. Last time it was a German factory that got the axe as the labor cost in Germany was significantly higher and it made economic case.

Majority of the UK plants production is Opel, not Vauxhall and is exported to (mainly) the EU. To top it off the majority of the parts used are imported for a double whammy in case tariffs are introduced. Although it makes sense to keep producing the Vauxhall locally it being a strong brand in the UK, exporting the Opel production might not be worth it. So my prediction is for a downsizing/consolidation into a single plant in the UK in case of PSA takeover.

[sasguru]

It's easier to fire people here so you close the UK down rather than Germany or France.

My current end client did that circa 1998 in the UK...

As BB said that didn't stop Opel closing down a Germnan plant and keeping a UK one open.
It might be cheaper to run a factory here due to the lax employment law + I'm sure I read somewhere total wages and benefits for car plants are higher in France and Germany.
However Opel as a US firm had no axe to grind with the UK, but Peugeot will - moving factories to France will be a no-brainer particualry with tariffs.

[eek]

Why would employment law in Germany or France apply in the UK?

It's easier to fire people here so you close the UK down rather than Germany or France.

My current end client did that circa 1998 in the UK...

[sasguru]

FTFY - as once the new Astra finishes production the odds of the UK being kept going is zilch - employment law in Germany and France makes that impossible...

Why would employment law in Germany or France apply in the UK?

[BlasterBates]

FTFY - as once the new Astra finishes production the odds of the UK being kept going is zilch - employment law in Germany and France makes that impossible...

They closed the factory in Bochum in Germany and kept production in the UK last time around.

The factory in Bochum was one of the original Opel factories.

[eek]

Vauxhall future: Peugeot 'takes pride' in not closing plants

Can we blame Brexit? I'm sure we can, over to the expat snowflakes...

Pride in not closing factories - Peugeot have form in the UK

[eek]

If Brexit turns out badly (i.e. tariffs apply), how long do you think a French company will keep open factories in the UK?

FTFY - as once the new Astra finishes production the odds of the UK being kept going is zilch - employment law in Germany and France makes that impossible...

[darmstadt]

Vauxhall future: Peugeot 'takes pride' in not closing plants

Can we blame Brexit? I'm sure we can, over to the expat snowflakes...

No

[sasguru]

Vauxhall future: Peugeot 'takes pride' in not closing plants

Can we blame Brexit?

If Brexit turns out badly (i.e. tariffs apply), how long do you think a French company will keep open factories in the UK?

[SueEllen]

I'm surprised GM have lasted so long they were busy in 2008.

[DimPrawn]

Vauxhall future: Peugeot 'takes pride' in not closing plants

Can we blame Brexit? I'm sure we can, over to the expat snowflakes...