PSA automaker abandons UK production if Brexit realizes profits – POLITICO

While the owner of Vauxhall Motors threatens to land on the mainland, two new reports warn of the dangers badociated with no deal.

French automaker PSA, owner of Vauxhall Motors, will trim production in the UK to the benefit of a new plant on the continent if Brexit has a negative impact on profits, according to its CEO.

The general manager, Carlos Tavares, told the Financial Times that the company would build its Vauxhall and Opel Astra cars – currently manufactured at Ellesmere Port in Cheshire, England – in southern Europe if the United Kingdom did not leave the EU on advantageous terms. More than 1,000 workers could lose their jobs if the factory was closed.

"Frankly I'd rather put it on [the Astra] at Ellesmere Port but if the conditions are bad and I can not make it profitable, I have to protect the rest of society and I will not do it, "said Tavares in an interview published late Sunday.We have an alternative to Ellesmere . Harbor."

The comments came as the Confederation of British Industries (CBI) warned in a new report that neither the UK nor the EU are fully prepared for a Brexit without agreement on October 31.

"The unprecedented nature of Brexit means that some aspects can not be mitigated. Josh Hardie, CEO of the CBI, said in a statement: "This is not just about queues in ports, the unseen impact of cutting the day-to-day trade in services would hurt to the companies of the country. "

In addition, the Institute for Government (US Government) has warned in a new report that the fallout of an uncoordinated departure would weigh on the British government in the foreseeable future.

"Rather than" turbo-charging "the economy," as suggested by new Prime Minister Boris Johnson, "the government will probably be busier in providing money and support to businesses. and to industries that have not prepared or have suffered the most from the disaster.Berxit without agreement – as well as deal with British citizens in the EU, and EU citizens here, who have also been trapped, "said the report.

Britain is bracing for a hopeless Brexit, more and more likely, Johnson having pledged to pull the UK out of the EU "dead or dead" by October 31.