Vauxhall future uncertain after GM-PSA deal and Brexit vote
February 17, 2017
Benjamin D Katz, John Ainger, and Christopher Jasper
Bloomberg via AutoNews.com
In March last year, UK Prime Minister David Cameron stood on the assembly line at the Vauxhall car plant in Ellesmere Port near Liverpool and warned that the factory was exactly the kind of success story that could be killed off by a vote to leave the European Union.
Less than 12 months on, Cameron is out of a job, his successor Theresa May is preparing a complete split from the EU and Vauxhall's future is uncertain as owner General Motors mulls the sale of its unprofitable European arm to France's PSA Group -- a move that may have been triggered by the Brexit vote.
With German politicians already lobbying to protect jobs at Vauxhall's sister brand Opel and PSA, part-owned by the French state, unlikely to favor cuts at its plants, a post-sale savings push would inevitably put the UK business under pressure even without the EU schism. The consequences of a so-called "hard Brexit" may leave it even more vulnerable.
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