Peugeot to build new van at Vauxhall plant

LUTON, England, Apr 4 (Reuters): Peugeot-maker PSA has unveiled plans to raise output at its British Vauxhall van plant, in a pre-Brexit show of confidence that will raise pressure on sister brand Opel's German workforce to offer concessions in labour talks.

PSA, which last year acquired Opel/Vauxhall from General Motors, will build Peugeot and Citroen models as well as the next Vauxhall Vivaro van in Luton, north of London. Production will rise to 100,000 vehicles from 60,000 in 2017. The French group, which is locked in labour talks with Opel's German workers, said the Luton investment was helped by "responsible social dialogue with the Unite union guaranteeing production flexibility", as well as UK government support.

The union said 350-400 jobs would be created as a result of the investment, which PSA said would amount to about 100 million euros ($123 million). Around 1,400 people are currently employed at the site, which is Britain's only van plant.The announcement is a boost to Prime Minister Theresa May ahead of talks to decide Britain's long-term trading relationship with the European Union, although PSA Chief Executive Carlos Tavares underscored the need for free trade.