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Vauxhall Says Ellesmere Port Closure Over Brexit is 'Pure Speculation'

2K views 10 replies 6 participants last post by  GolfBravo 
#1 ·
Vauxhall says Ellesmere Port closure over Brexit is 'pure speculation'
Liverpool Echo
Tom Belger



Vauxhall has dismissed claims its Ellesmere Port factory could close after Britain’s Brexit vote as ‘pure speculation’.

A spokesman said it was ‘business as usual’ at the Cheshire plant which employs nearly 1,700 workers.

He said that fears over the factory’s possible closure were unfounded, but called for free movement of trade and goods to continue during negotiations with the EU.

It comes after Liverpool mayor Joe Anderson warned that the plant could close with Brexit forcing production to be moved to Spain or Germany instead.

The Vauxhall spokesman said: “It’s business as usual at Ellesmere Port. The plant is a key operation in Opel Group’s European manufacturing portfolio. To suggest that it may close is pure speculation without any foundation.

“It is important for Vauxhall that negotiations on the UK’s future relationship with the EU are concluded in a timely manner. It is also important that business continues to benefit from the free movement of goods and people during this period.

“Communication on the development of the future relationship with the EU should also be clear and transparent. We fully support remaining part of the European Economic Area.”
 
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#2 ·
Holden got screwed by Germany, I wouldn't put it past them doing it to Vauxhall too!
 
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#5 ·
Auto News Europe

Equity analysts Evercore ISI today repeated its warning that Brexit will hit UK and Europewide car sales, as well as production.

Evercore expects UK car sales to fall 4.5 percent this year amid economic uncertainty, instead of its pre-Brexit forecast of 3 percent growth, and plunge by 10 percent next year, leading to a 2.5 percent fall in European production in 2017.
 
#7 ·
Good point.

But keep in mind that Vauxhall is only a brand of a German-based subsidiary of GM. And the EU will do everything they can to move those jobs out of the country formerly known as UK to continental Europe. Ellesmere Port only duplicates what another European factory already manufactures, it's very easy to shut this factory down. Especially given the predicted overcapacity increase in Europe.
 
#10 ·
Don't see much changing in trade between the UK and Europe as they both benefit from trade. Closing Ellesmere Port would create negative feelings in the UK that will impact European car sales in the UK that Asian companies can and will take advantage of.

If the value of the pound falls, it will make UK manufactured products cheaper/more competitive, so there are many variables that Brexit will create and it will take at least 2 years for the exit negotiations to be completed. There is a long way to go before the real world impact of Brexit are known.
 
#11 ·
If the value of the pound falls, it will make UK manufactured products cheaper/more competitive, so there are many variables that Brexit will create and it will take at least 2 years for the exit negotiations to be completed. There is a long way to go before the real world impact of Brexit are known.
I guess only time will tell. The UK-built Astra contains only around 20% of UK-sourced components, so around 80% percent of parts are imported from the EU and China. So the savings due to £ drop aren't as significant.

Plus the plant received a "significant" EU grant (European Regional Development Fund) to make this production viable - I don't know exactly how much, for comparison GM's plant in Poland received over €15M.
 
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