The owner of Vauxhall has announced that it will be shutting down its van-making factory in Luton, potentially leading to the loss of 1,100 jobs.
Stellantis has unveiled plans to move electric van production to its other plant in Ellesmere Port in a major blow to vehicle manufacturing in the UK.
It comes after strong criticism from bosses over the Zero Emission Vehicle mandate which requires manufacturers to sell a minimum percentage of electric vehicles every year.
From the end of the year, brands are expected to have 22 per cent of car sales and 10 per cent of van sales come from zero emission vehicles.
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Stellantis announced earlier this year that it would begin electric vehicle production in Luton in 2025
STELLANTIS
In a statement, the brand said it would consolidate its UK manufacturing of light commercial vehicles in Cheshire through a £50million investment.
It added that this would lead to greater production efficiency in a bid to become the best-selling LCV manufacturing in the world.
The statement continued: “Stellantis remains committed to acting responsibly toward its employees in Luton and, if the Company proposal is approved, will offer relocation support to facilitate employees wishing to transfer to the Ellesmere Port site with an attractive package, where hundreds of permanent jobs will be created.
“Dedicated comprehensive job support, including opportunities for retraining, for all employees affected will also be implemented in the very active Luton area, just one mile from the international airport.”
Stellantis added that it would work with local government and local employers to “identify new employment opportunities within the Luton area” who would be impacted if the proposals go forward.
In February 2024, Stellantis announced that it would begin production of electric vehicles at the Luton plant from 2025 to produce medium-size electric vans for Vauxhall, Citroen, Peugeot and FIAT Professional.
Work was put in place to prepare the plant for limited production of medium electric vans, in addition to the continued production of internal combustion engine vehicles.
Speaking at the time, Mark Noble, Luton Plant Director and Stellantis UK Manufacturing Lead, said it was a fitting way to mark Luton’s 120th anniversary.
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Stellantis announced a £50million consolidation plan to upgrade its Ellesmere Port plant
STELLANTIS
