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The PSA group could close the UK plants of Opel (Vauxhall)

PSA Opel Vauxhall Luton

Negotiations for that Group PSA be done with Opel and Vauxhall to continue its course. According to one official statement from the French both “General Motors as PSA Group regularly examine additional expansion and cooperation possibilities in addition has also clarified that “along with General Motors, it is exploring numerous strategic initiatives in order to improve its profitability and operating efficiency, including a possible acquisition of Opel (Vauxhall)”.

These statements seem to want us to say that the deals are moving, however, to avoid last minute problems, PSA also has clarified that “there is no security that a final agreement is reached”. As well, while all this is going on, we hear rumors that talk about the closure of factories and production plants in Europe.

PSA Opel Vauxhall Ellesmere Port

He was reported following the talks between General Motors and PSA French group it promised not to close any of the four factories that have Opel in Germany. After made this information public alarms jumped in United Kingdom as Vauxhall there has two plants that yes could be closed when PSA control of Opel.

In Europe General Motors boasts nine factories, all devoted exclusively to Opel. According to Reuters news agency to the Group PSA can get benefits after the acquisition of firms in German and English should cut production and employment in the half of the European plants. This would leave you have on United Kingdom out of the game, and therefore the loss of jobs in the English automobile sector would be very important.

In Ellesmere Port and Luton plants, currently about 4,500 employees work directly. However not only are these jobs at risk, since they create many indirect jobs throughout the country. However and there being reasonable is a reason to think that they will be finally closed.

The main reason is the Brexit. If United Kingdom out of the European Union and loses its free trade agreements with other countries of the eurozone products manufactured locally will have to pay a tariff to enter our common market and that it would make that their prices increase directly. Obviously if the cars produced in the country rise of price the Group PSA prefer close them plants that have that assume the cost of produce in the country taking losses. Therefore, United Kingdom may lose much more than you think with his departure from the European Union.

While all this is happening from the largest workers trade union of Opel in the United Kingdom already have been hands to work so that his first Minister to guarantee their jobs. We will see to see what happens in the coming days.

Source – Automotive News

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