GM plans to close its two British plants by 2020

 

The GM group owns currently two car plants in Great BritainEllesmere Port, which produces the Astra, and Luton, which produces the Vivaro utility.

Ellesmere Port (-51% between 2005 and 2015) and Luton (33% between 2005 and 2015) plants declined sharply over the past decade.

In 2015, each of these plants operates currently at 50-60% capacity:
Ellesmere Port plant at 46% of its 200,000 units per year capacity.
Luton plant at 61% of its 100,000 units per year capacity.

GM operates other plants in Europe: Eisenach (Germany), which uses 83% of its 200,000 units capacity, Gliwice (Poland), which uses 85% of its 200,000 units capacity, Russelsheim (Germany), which uses 65% of its 200,000 units capacity and Zaragoza (Spain) which uses 76% of its 470 000 units capacity.

In short, except for Zaragoza, GM has small production units, which could be optimisedto make larger capacity plants (between 300 000 and 400 000 units), at the image of the Spanish plant.

The Brexit could be the opportunity for the manufacturer to streamline its European production.
GM would consider to close  by 2020 Lutonand Ellesmere Port plants, with a transfer of the production of Astra to its Polish plant in Gliwice and that of Vivaro to the Renault factory in Sandouville.


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