The French carmaker which owns Vauxhall has renewed its threat to close the Ellesmere Port plant in Cheshire if Brexit makes it unprofitable.

Carlos Tavares, PSA's chief executive, told the Financial Times he had in mind an "alternative" production facility in southern Europe for the Astra and Opel Astra - its right-hand drive version - should the numbers not work in the company's favour.

His remarks built on a similar threat last month after PSA said it intended to build the next generation Astra at Ellesmere Port and at Russelsheim in Germany.

Image: The industry is battling threats on several fronts as the clock ticks down to 31 October

:: PSA holds Brexit gun to Ellesmere Port plant

PSA, which also owns Peugeot, admitted that the investment depended on the terms of the UK's departure from the EU and the ratification of a new vehicle agreement with the Unite union.


The UK car industry is fiercely opposed to a no-deal Brexit, fearing it will result in higher costs and border delays.

Mr Tavares spoke up just days after Boris Johnson, who supports leaving without a new withdrawal agreement on 31 October, became prime minister.

There is no suggestion the Vauxhall van plant at Luton is under threat.

PSA employs 1,000 staff at Ellesmere Port working solely on the Astra.

Its future has been on shaky ground for years - including under previous owner General Motors - but management and unions have worked to bolster its profitability.

Mr Tavares made clear he still favours keeping Ellesmere Port.

But there are a string of other pressures facing the industry.

They include the drive for investment in electric cars to help the environment at a time of a slump in global demand for cars generally - mostly a consequence of the US-China trade war.

These factors have contributed to Ford's decision to close its Bridgend engine plant and Honda's move to pull out of Swindon.

Both firms insisted there was no Brexit link.