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UK Vauxhall car factory decision moving in right direction, says Tavares

By Reuters

(Fixes typo in headline)

LONDON (Reuters) – A decision on the future of the Vauxhall car factory in England is moving in the right direction amid “extremely positive” talks with the government, the boss of its parent company said after previously calling for support to keep the site open.

Parent company PSA said in 2019 it wanted the Ellesmere Port plant, which employs around 1,000 people, to make the new Opel/Vauxhall Astra there, but that would depend on the outcome of Britain’s departure from the European Union.

Since then, London and Brussels have agreed a tariff-free deal dependent on local content levels, PSA merged with Fiat Chrysler to form Stellantis, and a UK plan to end the sale of new combustion-engine-only cars was brought forward.

The company said earlier this year it was now weighing whether to make electric cars at the location and was awaiting a commitment from the government.

“Things are moving in the right direction,” Stellantis Chief Executive Carlos Tavares told an FT conference.

“We are waiting for the approval of the UK administration,” he said.

(Reporting by Costas Pitas; editing by Michael Holden)