GM giving up on Vauxhall and Opel in Europe

[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.

[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.

[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.

[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.

[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.