The next generation of the Vauxhall Astra will be built in the UK, but it will be conditional on the final terms of the UK's exit from the European Union, the car giant has announced.

Parent group PSA said the new model will be built in Ellesmere Port, which employs more than 1,000 workers, if a satisfactory Brexit deal is reached.

The PSA Group said it will also invest in the Russelsheim plant in Germany to manufacture Opel Astras from 2021.

A company statement said: "Since the acquisition of Vauxhall Motors by Groupe PSA, we have been working hard to turn around the fortunes of the brand and to address the performance of the commercial and manufacturing divisions.

"Currently, the Vauxhall and Opel Astra are built in Ellesmere Port and in Gliwice, and our bestseller is still in the middle of its life cycle.

"Groupe PSA has today announced its intention to manufacture the next generation Astra in two plants in Europe.

"The group has confirmed that the Russelsheim plant will manufacture Astra and that it is planned that the second plant will be Ellesmere Port in the United Kingdom.

"The decision on the allocation to the Ellesmere Port plant will be conditional on the final terms of the UK's exit from the European Union and the acceptance of the new vehicle agreement, which has been negotiated with the Unite trade union.

"This news demonstrates the continuous effort and commitment of Groupe PSA to Vauxhall Motors."

Chester and District Standard:

Groupe PSA will invest in the Rüsselsheim plant and create the sustainability of the site with the production of the next generation Opel Astra as of 2021

The intention to manufacture the next generation Astra at Vauxhall’s Ellesmere Port plant was seen as positive by Ellemsere Port and Neston MP Justin Madders.

Mr Madders said: “Today’s announcement is positive news for workers in Ellesmere Port and is down to the commitment of the local workforce and the unions who have been working constructively with the new owners to ensure the plant is in the best position possible to secure its future.”

“Today’s announcement provides a clear roadmap for us to continue car production in Ellesmere Port  but with the decision being subject to the final term’s of the UK’s future relationship from Europe, it is up to politicians to deliver on the conditions needed to confirm this. A no-deal Brexit would be catastrophic for both people working at the plant and for workers in the supply chain, and must be avoided at all costs. Whatever the future looks like, it must include a close and frictionless trading relationship with the rest of Europe.”

While the future of Ellesmere Port hangs somewhat in the balance, the German plant is to work in two shifts as a result of the investment.

Yann Vincent, Executive Vice-President Manufacturing & Supply Chain at Groupe PSA, said: “I count on Rüsselsheim to contribute to the manufacturing of the next generation Opel Astra.”

Just months ago, the boss of Vauxhall's parent company has said there will no further investment in the Ellesmere Port plant until the fate of Brexit is known.

Carlos Tavares, CEO of Groupe PSA, which took over Vauxhall in 2017, also warned a 'no-deal' out come would be a "disaster" for Britain and the rest of Europe.

Mr Tavares made the comments during an ITV News interview at the annual Geneva car show.

The motor firm, in parallel with most other car companies, is looking to manufacture more electric and hybrid cars in the future.

Currently, Vauxhall's Ellesmere Port plant makes the Vauxhall Astra, but does not make any electric or hybrid cars.

When questioned on the future of the Ellesmere Port plant in the event of a no-deal Brexit, Mr Tavares said: "For the UK as a whole, not specifically for Ellesmere Port, a no-deal outcome I think it's a disaster.

"It's also a disaster for continental Europe. We Europeans have all the reasons in the world to make a deal."

The Ellesmere Port plant has been hit with a series of job losses in recent years, the last announced in November 2018, where a 'phased reduction' during 2019 would ultimately see headcount reduced by 241.