Vauxhall May Close One Of Its UK Plants After Brexit

The PSA Group has revealed that it is considering closing one of Vauxhall’s UK sites after the U.K. leaves the European Union.

Speaking with Bloomberg, an individual familiar with the matter said that PSA is looking into the feasibility of permanently shutting down one of its UK plants but that a final decision has yet to be made. This isn’t the only option being considered.

A number of other options are said to be on the table. One option is for the car manufacturer to stockpile parts to avoid shortages ahead of Brexit. Additionally, Vauxhall could bring forward a summer shutdown just like BMW is doing.

“We do not want to comment at this stage on Brexit process and its assessment by Groupe PSA as it is not the final step for implementation,” Vauxhall said in a statement. We are working in an agile mode, as usual, and we have several solutions to address different scenarios.”

A plethora of car manufacturers have warned about the adverse effects Brexit could cause, particularly if the deal results in border delays, new tariffs, and additional paperwork. Prime Minister Theresa May wants to arrive at a deal with the EU before March 29 to avoid such issues but it remains to be seen if anything will be achieved.

At last month’s Paris Auto Show, BMW chief executive Harald Krueger revealed that the company may have to move production of its Mini range from England to the Netherlands. Aston Martin, McLaren, and Jaguar Land Rover have also formed contingency plans in the event that the UK cannot reach a deal with the EU.