Astra La Vista Vauxhall has terminated contracts with all its 326 dealerships. This will lead to Vauxhall closing one in three of its dealerships across Britain. This will affect 3,700 British jobs The company will scale back its operation amid falling sales and changes to the way motorists buy cars.
Vauxhall Motors Limited is one of the oldest established vehicle manufacturers and distribution companies in the United Kingdom and has its headquarters in Luton, Bedfordshire, England. Although at first an independent manufacturer and at one time a subsidiary of GM, it is now a subsidiary of the French automotive giant Groupe PSA which also manufactures vehicles under the Opel, Peugeot, Citroën, and DS brands.
The French-owned parent company will cancel contracts with all of its 326 dealers in the UK. It will then reportedly strike new deals with the best performing 200 or so branches.
Stephen Norman, Vauxhall’s UK boss, while insisting that staff would not lose their jobs as a “direct result” of Vauxhall’s decision also said the move is not related to the UK’s decision to quit the EU:
[This is] something that would happen with or without Brexit. Conditions in the motor industry are changing. Competition is much more fierce than it was five years ago, there are different methods of consumption. It is not any one single reason.
Vauxhall has major manufacturing facilities in Luton (commercial vehicles, IBC Vehicles) and Ellesmere Port, UK (passenger cars). The Luton plant currently employs around 900 staff and has a capacity of approximately 100,000 units. The Ellesmere Port plant currently employs around 1,880 staff and has a theoretical (three-shift) capacity of approximately 187,000 units. Vehicles manufactured in Opel factories in Germany, Spain, and Poland and sold in the UK are re-branded as Vauxhall