Vauxhall Astra production jobs cut by 25% at Ellesmere Port as PSA wield the axe

PSA, which acquired GM’s Vauxhall and Astra business in August, is cutting 400 jobs at Ellesmere Port where the Astra is built in the UK.

PSA – France’s Peugeot Citroen Group – completed acquisition of GM’s Vauxhall Astra brands back in August, and it’s starting to wield the axe.

Having committed to maintaining production of the Vauxhall Astra at Ellesmere Port until 2021, it’s decided the only way to make that viable is to cut jobs and production.

With a declining car market, especially for non-SUV models, PSA has announced it will cut 400 jobs at Ellesmere Port – through voluntary redundancies – in the coming months, reducing the workforce by around a quarter.

PSA also plans to cut the current two shifts at Ellesmere Port to just one, and aims to improve productivity and manufacturing costs which, say PSA, are “significantly higher” at Ellesmere Port than PSA’s plants in France.

PSA are also indicating that the future of Ellesmere Port is linked to what happens with tariffs when the UK leaves the EU in 2019, with concerns about the relatively low UK-sourced quantity of parts – around 25 per cent – meaning the cost of production will rise further at Ellesmere Port if no trade deal is done.

Will Ellesmere Port still be in operation after 2019? There must be serious doubts it will.