SMTA backs Vauxhall in Scotland 06 | 03 | 2017
SCOTTISH VAUXHALL DEALERS have received a strong, positive message from Sandy Burgess, chief executive of the Scottish Motor Trader Association, in the wake of today’s Peugeot-Citroen’s £1.9bn takeover deal. (Related: PSA Group agrees £1.9bn Vauxhall deal)
Burgess believes it will be “business as usual” for Vauxhall, the top-seller in Scotland for the last nine years, and that Scottish dealerships can expect to benefit through shorter production cycles leading, ultimately, to higher sales.
The SMTA boss has also identified the potential post-Brexit significance of Peugeot-Citroen now having a UK-based volume car production plant. In a post-EU economy, the new Peugeot-Citroen-Vauxhall marriage mean cars built at Luton will not be exposed to any future import duties.
“Since the deal was first muted a few weeks ago, I’ve had some time to talk to people and reflect on exactly what’s going on,” Burgess explained.
“In general, where there are dealers who are currently Vauxhall, or dealers who are currently Peugeot or Citroen, I think the status quo will very much remain.
“I don’t see anything other than business as usual for Vauxhall, Peugeot and Citroen dealerships in Scotland. One positive development, I think, will be the introduction of new products coming through quicker, once they start to standardise the platforms across all three marques.
“That’s obviously what they’re going to do. They will simplify the brand by standardising the platforms, bring the production costs down and actually bring the turnaround of products far, far quicker.
“So from the dealer perspective I think, certainly as far as the Vauxhall franchise is concerned, it will be business as usual.
“Where we have a dealership group who represents all three of the brands, I feel that could be an interesting situation because they might see some economies of scale in their funding.”
Burgess — who previously represented Peugeot across Dumfries & Galloway, before selling to the GK Group in 2002, and served on the Peugeot National Dealer Council for two years as Scottish chairman — also highlighted the possible international and national post-Brexit benefits.
“As far as the bigger picture is concerned, and in light of what the possible fallout from Brexit might be, you do wonder if the PSA Group hasn’t actually got another agenda going on,” he continued.
“If things do turn out to be sticking in terms of the Government’s negotiations over the UK’s withdrawal from the EU, then PSA will have landed itself with a UK manufacturing plant — a volume manufacturing plant — at Luton.
“This could give them a very significant opportunity and advantage in that they will be competing with other volume manufacturers, Peugeot-Citroen included, who are having to pay import duties on their products.
“I’m no politician or economist, but I think this could be a very shrewd decision by PSA. They’ve clearly got to improve their cost base, but it will certainly be an interesting few years.
“The other thing we obviously don’t know is what deals are being done behind the tightly closed doors of Downing Street.
“Personally, I think the Vauxhall brand will continue for the simple fact that it’s the highest-selling manufacturer in Scotland, and second-highest in the UK.
“I don’t see any situation where the Vauxhall brand, and all that heritage, will be simply forgotten and rebranded.”
Related: Vauxhall Insignia Sports Tourer revealed
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Jim McGill