Vauxhall Likely To Stick Around Even As Sales Fall

Vauxhall’s sales slump is well documented. This year, new registrations fell 35%. The market in total fell 12%, which pushes the brand far past the average.

But, Vauxhall will likely survive as an Automotive News report stated earlier this month. PSA CEO Carlos Tavares sees value in the brand and believes there’s something to rebuilding the iconic British brand. And even despite talks to shut down the Ellesmere Port plant, the facility will likely survive for years to come. Why? Brexit.

“It wouldn’t be smart if management just says we close Ellesmere Port and suddenly there are trade barriers and we have no production capacity in this important market and lose access,” Wolfgang Schaefer-Klug, Opel’s top labor representative, said.

Opel’s turnaround plan, revealed earlier this month, calls for greater synergies between Opel, Vauxhall, Peugeot and Citroen. It’s also worth noting Vauxhall sold more cars than Peugeot and Citroen combined. Clearly, PSA sees opportunity, even if may sell fewer cars, but extract greater profits from each vehicle sold.