More than 1,100 jobs at risk as Vauxhall owner Stellantis plans to shut Luton van factory
Vauxhall owner Stellantis has announced plans to shut its Luton van-making factory, putting more than 1,100 jobs at risk in a move described as "devastating" by town officials.
Stellantis said it planned to shut the site next April but was hoping to transfer “hundreds” of jobs to the group’s Vauxhall site in Ellesmere Port in Cheshire.
It is now in consultation with unions and employees over the proposals, which will also see it invest £50m into Ellesmere Port.
It comes a week after Stellantis and other motor manufacturers met with Transport Secretary Louise Haigh urging the government to relax the rules on sales quotas for electric vehicles.
Currently, at least 22% of new cars sold by each manufacturer in the UK this year must be zero-emission, which generally means pure electric, and every car sold above the limit incurs a £15,000 fine.
Leader of Luton Council Hazel Simmons said Vauxhall had been an "integral part of Luton's heritage".
She said the news was a "devastating blow for our town" and the council was ready to offer help to those affected.
Rachel Hopkins, MP for Luton South and South Bedfordshire posted on X said news of the proposed closure was "deeply troubling for the town", adding: "Luton depends on these high-quality manufacturing jobs to drive local growth and support national prosperity.
"The Vauxhall plant is part of the fabric of Luton’s heritage and vital to our local economy. For over a century, generations of Lutonians have worked there, contributing to the production of vehicles like the Vivaro van. These efforts have created jobs and attracted investment."
Around 1,120 full-time employees work at the Luton factory, which currently makes light commercial vehicles.
In February, Stellantis confirmed plans to bring EV production to the Luton site in 2025, after lines began running at Ellesmere Port last year.
Hundreds of jobs at the Luton plant, which first opened in 1905, could be relocated to the Cheshire-based factory.
Factory convenor, Gary Reay from union Unite, said: "I imagine there will be shock and anger. The company announced their plans, shortly after they'd sent the workforce home, the workforce will be returning tomorrow. The company they will be coming back as normal across all three shifts."
'Industry under pressure from electric vehicle targets'
Stellantis said the decision was made within the context of the “stringent” UK zero-emission vehicle mandate.
Under the current rules, this requires 22% of all new car sales to be battery-electric vehicles in 2024, with the target rising to 80% by 2030 and 100% in 2035.
Last week, ministers met with automotive leaders to discuss the sales quotas for electric vehicles. Carmakers and retailers have expressed fears that the mandate is putting jobs at risk at UK vehicle factories and piling pressure on manufacturers.
Concerns have also been raised over a lack of charging infrastructure across the country to support the transition to electric vehicles.
The announcement from Stellantis also comes a week after Ford announced it will cut about 800 roles across the UK over the next three years amid pressure from “lower-than-expected demand” for its electric cars.
Vauxhall's owner said it would "offer relocation support to facilitate employees wishing to transfer to the Ellesmere Port site with an attractive package".
“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," a spokesman added.
“At the same time, Stellantis will work with local government and local employers to identify new employment opportunities within the Luton area for Stellantis employees who might be impacted by this proposal if it goes ahead.”
A government spokesperson said: "While it’s encouraging to see Stellantis investing in the future of its Ellesmere Port plant, we know this will be a concerning time for the families of employees at Luton who may be affected.
"We have a longstanding partnership with Stellantis and we will continue to work closely with them, as well as trade unions and local partners on the next steps of their proposals.
"The government is also backing the wider industry with over £300m to drive uptake of zero emission vehicles and £2bn to support the transition of domestic manufacturing."
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