Yahoo Finance Vauxhall's Ellesmere Port plant to remain shut until September
Vauxhall’s Ellesmere Port plant will not reopen until at least September, raising fresh questions about the future of the factory which builds the Astra - but production at the firm's Luton van factory is being ramped up.
The Atra site in Cheshire will stay shut following a slump in demand for cars which has allowed backlogs to build up.
Staff were sent home from the factory in late March as the lockdown was imposed, meaning it will have been mothballed for nearly six months under current plans. Around 1,000 people work at Ellesmere Port.
However, Vauxhall's parent firm PSA Groupe is increasing production at its Luton facility because demand for vans has bounced back to pre-cononavirus levels as parts of the economy reopen.
The firm will move as may as 250 Ellesmere Port employees to the plant, bolstering its existing 1,600-strong workforce so capacity is not limited by social distancing and enhanced cleaning measures.
A third daily shift will operate at Luton, which makes the Vauxhall and Opel Vivaro, Peugeot Expert and Citroën Dispatch vans.
Experts were taken aback by the Ellesmere Port delay, at a time when rival marques are seeking to return close to normal.
Professor David Bailey, an automotive industry expert at Birmingham University, said: “This is a real surprise as staff had been given safety training about working with social distancing and were waiting to hear when production was restarting.
“It not only shows how bad a state the new car market is in but also raises doubts about Ellesmere’s future, and whether the company will decide to invest in building a new Astra there.”
Coronavirus has pushed UK car sales off a cliff, sending them down 89pc in May, 97pc in April and 44pc in March after dealers were forced to close because of the pandemic.
The future of the Ellsemere Port factory was already in doubt due to Brexit, with fears that it will be left uneconomic fg Britain leaves the European Union without a free trade deal because of tariffs and customs delays on components coming from the Continent.
PSA boss Carlos Tavares previously likened a no-deal Brexit to a “train crash” for the UK automotive industry.
A Vauxhall spokesman added that the extended closure includes the August holidays, when production normally stops for maintenance.
He added: “We have always said the future of Ellesmere Port is aligned to the outcome of Brexit."
