Decision won’t be made on future of Ellesmere Port car plant until state of EU trading relationship becomes clear
A final decision on the future of Ellesmere Port’s car plant will likely not be made until the end of the year.
The car industry has been one of many saying it could be adversely affected if a trade deal is not struck.
PSA, which is currently merging with Italy’s Fiat Chrysler, makes its Vauxhall and Opel brands at the plant.
“The decision will not be taken until we have a clear understanding of the outcome of discussions between the British government and the European Union,” Reuters quoted Tavares saying in a conference call.
The Ellesmere Port facility is listed as a candidate to make the next generation Vauxhall Astra.
Tavares listed the key factor as being whether a free market for both completed cars and their components is maintained.
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The company also has a factory in Luton which manufacturers commercial vehicles.
Regarding the factory’s future: “We won’t have an answer on that until at least midway through this year and most probably not until the end of 2020,” Tavares added.
He also said the company has sufficient supply stocks to whether the economic effects of the coronavirus.
On advice of the Chinese authorities, the company will resume operations in Hubei province on 11 March.
Several international car companies including Nissan, Hyundai and Tesla have had their operations disrupted by the crisis.
The world economy has also faced turmoil as stock markets and the oil price fell last week.
The process of deciding a name for the new group also remains ongoing.