Here’s why analysts think Britain could soon stop making the Vauxhall Astra altogether
Despite PSA pledging to respect existing Opel and Vauxhall job guarantees if it buys the European branch of General Motors, analysts still think jobs are at risk.
And investment bank Evercore thinks Britain could soon cease to manufacture the Vauxhall Astra altogether.
In terms of making a combined business work, Evercore said: "It's about hard restructuring in Germany, the UK and in Spain resulting in at least 5,000 job cuts."
In a report on the prospective deal, analysts said PSA could shut three production plants. The Astra is made at Ellesmere Port in the UK, and Evercore thinks that could be closed to shift manufacturing to a cheaper overseas site without the need for additional capacity.
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"It would make sense to move production to PSA's Sochaux plant in France," Evercore said.
The other two plants that could be up for the chop are GM's Eisenach plant in Germany and PSA's Villaverde plant in Spain. All three have platforms due to reach the end of their respective lifestyles by 2021.
The Ellesmere Port plan produces the Astra on its Delta 3 platform until 2021, at which point, Evercore "would not be surprised" if PSA moved production to France to optimise production costs.
It estimated that €350m of annual savings would be made by not having to pay the salaries of the 5,000 employees that are likely to lose their jobs as a result of the closures.
PSA produces nearly 50 per cent of its vehicles in France and has a stronger sales presence there too, while GM spreads its production more equally across Europe and has a stronger sales presence in the UK and Germany.
Both have followed a similar downward trend in terms of market share in Europe, but any new combined business would have the second largest share in Europe behind VW.
Read more: Unite plans to meet PSA on Friday for clarity over growing job concerns
In a statement, the French Peugeot maker said: "PSA Group reaffirmed its commitment to respect the existing agreements in the European countries and to continue the dialogue with all parties."
But analysts have been speculating over whether PSA will need to make some hefty cuts to turn around the loss-making Opel. Evercore said "there should be no illusion as to what will need to happen in order to make a business combination work".
Unite union boss Len McCluskey is set to meet PSA chief executive Carlos Tavares on Friday to discuss his concerns over jobs.