General Motors would leave England in the face of the threat of Brexit

The consequences of the response to the positive vote on Brexit are arriving little by little. As far as the car industry is concerned, information is starting to emerge that offers clues about where the intentions of car manufacturers based in the United Kingdom are heading. The main argument that may weigh on their decisions is the presence of tariffs on products manufactured in countries that leave the European Union.

One of these companies is General Motors, which under the Vauxhall brand builds two models: the five-door Astra at the Ellesmere Port plant and the Vivaro in Luton. Both models could leave this country and start production in plants in Germany or Poland, thus avoiding having to pay any additional tax on exporting these models.

In addition, there are further reasons that could lead General Motors to decide to abandon British production of these two models. The Ellesmere Port plant is loss-making and at risk of closure. If Brexit happens, the increase in costs for vehicles produced there would make the situation unsustainable.

The situation will remain under study, with no definitive decision being taken until the exit process begins, if it does happen. This will last four years from the moment negotiations start, and the final decision by General Motors will depend on them. This uncertainty will continue until the United Kingdom reaches agreements with the European Union and it becomes clear how this highly unusual situation will affect the British industry.

In 2021, when the Brexit could take place, the launch of a new generation of the Opel Astra is planned, so it will be a delicate moment that could influence the price of this new version of one of the most popular models of Opel, with everything that may mean for its success or failure. We will have to wait a little to learn the effects of this decision, if it does come to pass.

Source: Carscoops