Vauxhall’s future in Britain questioned following Brexit

Doubt has been cast over Vaxuhall’s’s future in Britain following the Brexit referendum result in a new LMC Automotive report.

Analysts suggest in the report that Vauxhall’s parent company, General Motors (GM), is the manufacturer most likely to move its production to mainland Europe due to rising costs once Britain leaves the EU.

GM also owns Opel, which produces almost entirely identical models to Vauxhall, but for left-hand-drive markets.

The LMC report claims moving production of UK-bound models to Opel’s Polish factory would, therefore, be financially viable, and could happen as soon as in five years, to coincide with the launch of the next-generation Astra.

The Opel Astra is already produced at the Gliwice plant. The British-built right-hand-drive equivalent is currently made at Vauxhall’s Ellesmere Port plant in Cheshire, which employs more than 2000 people. Vauxhall also produces its Vivaro van at a facility in Luton that employs more than 900 people.

Despite the suggestions of the LMC report, Vauxhall has told Autocar UK that business will carry on as usual until the UK government reveals its plans for Brexit.

When the EU Referendum result was revealed last month, Vauxhall said: “It's important that business continues to benefit from the free movement of goods and people during [the transition] period [of Brexit].

“Communication on the development of the future relationship with the EU should also be clear and transparent. We fully support remaining part of the European Economic Area.”