Peugeot to Save Vauxhall with New Van Investment

During a recent press statement, Carlos Tavares, a Groupe PSA chairman, announced that Vauxhall’s Luton-based plant would once again come to life, as the company decided that the new Vivaro model will be exclusively produced in a British car factory.

Vauxhall Latest Contract to Save 1,400 Jobs and Create More

Although investors feared that Vauxhall below-average performance might lead to the closing of the factory, it would appear that Peugeot, the carmaker who bought the British brand a couple of years ago has decided to rejuvenate the business with a multi-million investment.

Speaking on behalf of the Groupe PSA, Tavares declared that the board has voted in favor of manufacturing the Vauxhall Vivaro model on British soil, at the Luton factory.

Although Tavares has refused to disclose the sum of money Groupe PSA has invested in this venture, he did mention that this recent move will not only save the company from sinking ever further but will create new job opportunities.

An early estimate released by Peugeot reveals that with the multi-billion pounds investment, the plant’s production capacity will have been increased by more than a third. This means that by the end of 2019 over 100,000 cars will be produced at the Luton-based plant, compared to 60,000 in 2017.

Moreover, Tavares also stated that along with the Vivaro, the Luton plant would continue producing Citroen Jumpy and Peugeot Expert models.

With the recent move, Groupe PSA managed to save approximately 1,400 jobs and create even more by the end of next year, a piece of news which relieved worried employees.

Still, this does not appear to be the end of the story. Should the predictions become a reality, Groupe PSA also intends to bring back to life the Ellesmere Port Vauxhall factory, impossible at the moment, since Brexit doesn’t allow the company to make long-term predictions.

Image source: Wikipedia

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