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PSA will cut 400 Vauxhall jobs in UK; says production not competitive compared with France
The French automaker, which finalized its purchase of Opel/Vauxhall from General Motors in August, will ax up to a quarter of the workforce at Vauxhall’s plant in Ellesmere Port in northwest England.
PSA said it will cut 400 jobs at the factory to improve the production facility's competitiveness, confirming an earlier report in Automotive News Europe.
Ellesmere Port needs to adjust production volumes because of "challenging European market conditions and a declining passenger car market, a PSA spokesman said on Friday.
The factory must also improve its performance to protect its future, the spokesman said.
The cuts will be made through voluntary layoffs.
The cuts will happen by reducing production to a single shift, down from two now, sources told ANE.
The plant is one of two Astra production factories in Europe along with Gliwice in Poland. It builds Astra hatchbacks and wagons and employs 1,667 people, according to Vauxhall’s website.
The UK is Vauxhall/Opel’s biggest market, but Vauxhall sales fell 20 percent in the first nine months as the overall British car market cooled. Fleet sales account for around three quarters of all Vauxhall sales.
Astra sales across Europe fell 2.6 percent through August, according to market researchers JATO Dynamics.
