Britain's Vauxhall cars, which was this summer taken over by French automaker PSA, is planning to cut 400 jobs at one of its factories by the end of the year, a PSA spokesman said Friday. The voluntary redundancies planned for the Ellesmere Port plant in northwest England are in response to "challenging European market conditions and a declining passenger car market", he told AFP.
"Vauxhall tabled a plan that encompasses a move towards single shift operation at Ellesmere Port during 2018 and a voluntary separation programme for eligible employees amounting to approximately 400 heads by the end of 2017," the spokesman said. The company will discuss the plan with employee representatives during a 45-day consultation period. PSA, which owns the Peugeot, Citroen and DS brands, became Europe's second biggest carmaker after Volkswagen in August when it bought Vauxhall and German brand Opel from US auto giant General Motors.
The takeover prompted concern about job losses in Britain, where Vauxhall directly employs about 5,000 people, most of them in two factories - in Ellesmere Port and in Luton, in the southeast of England. Prime Minister Theresa May personally sought assurances from PSA chief executive Carlos Tavares during a phone call in February. The spokesman said Friday that the group could not commit to further investment until there was more clarity on Brexit talks between Britain and the European Union.
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