4/18/2019

PSA May Move U.K. Astra Production to Germany

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PSA Group is near a decision shift as much as 75% of its output of Opel Astra small cars from the Ellesmere Port, England, to Russelsheim, Germany.

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PSA Group is near a decision shift as much as 75% of its output of Opel Astra small cars from the Ellesmere Port, England, to Russelsheim, Germany.

The move would come as PSA prepares to build the next-generation Astra due in 2021, according to Handelsblatt. The French carmaker also builds Astras in Gliwice, Poland.

The German business newspaper says PSA is looking at two options. Both are driven by the need to find a new model for Russelsheim to make after the Zafira Tourer minivan goes out of production there this summer.

One option would shift 75% of Astra production from England to Germany, leaving the British facility to make only right-hand-drive versions of the Astra. The second option would give Ellesmere Port 75% of overall Astra production and relocate the balance from Gliwice to Russelsheim.

Handelsblatt says the first option appears more likely because of uncertainties about Brexit. But it says Russelsheim isn’t likely to be awarded Astra production unless its unions agree to job cuts.