7:38 am, February 6, 2025
Stellantis has confirmed that it will close the historic Vauxhall van-making factory in Luton in April.
The confirmation rubber-stamps plans first announced by the carmaker in November 2024, which partly blamed the UK’s switch to EVs and the ZEV Mandate as reasons for the decision.
At the time, it was believed 1,100 jobs were at risk.
After closure, machinery will be transferred to the carmaker’s other site at Ellesmere Port, Cheshire, where electric vans are already produced for an array of Stellantis brands, reported BBC News.
Production of electric vans will be combined at Ellesmere Port, with the building of medium-sized models expected to begin next year.
Stellantis said it will invest £50m in Ellesmere as it seeks to make the plant its UK commercial vehicle production hub.
The British brand has been making vehicles at Luton since 1905.
Luton Council said it was ‘extremely disappointed and angry’ after ‘numerous options put forward to keep the plant open were rejected’ by Stellantis.
The Labour leader of Luton Council, Hazel Simmons, criticised the decision, calling it a ‘devastating blow’.
She said: ‘Vauxhall has been an integral part of Luton’s heritage for decades. We did what we could to try and stop this closure going ahead and I feel angry that this decision will massively impact the lives of so many people.
‘This is news the workers and their families would have been dreading to hear and we want them to know we are behind them and will support them all we can.
‘It’s not just them who are affected. This will impact the whole town. With job losses at the plant as well as the wider supply chain, it will have a huge impact on the local economy, but we will recover from this.’
Luton Council said it is in discussions with Stellantis to purchase the site to ‘ensure its future development will be of economic benefit to the town’.
Business and trade secretary Jonathan Reynolds said: ‘This news will be deeply concerning for the employees at Luton who will be affected and their families.
‘We have a longstanding partnership with Stellantis and have engaged with them extensively throughout this process, including discussions over the past week and today. We will continue to work closely with them, the trade unions and Luton council to put in place measures to support the local community.’
Unite general secretary Sharon Graham said: ‘Stellantis’ betrayal of its Luton workforce, who have delivered every target asked of them, is a total disgrace.
‘Once again, UK workers have been exposed to a company willing to sacrifice our manufacturing base for fleeting gains – this has to change.
‘We urgently need an industrial strategy that puts the national interest at the heart of decision making in manufacturing, as they do in other countries.’
In a statement, Stellantis said: ‘The required consultation period with Unite the Union, which has been detailed and constructive, has now finished and we are engaging with all interested parties to ensure that the employees have the best possible advice for their future.
‘These employees are our priority and we will continue to act responsibly towards those in Luton.’
