Stellantis, the owner of Vauxhall, has announced plans to close its van manufacturing plant in Luton, Bedfordshire, putting 1,100 jobs at risk. Production will be relocated to the company’s Ellesmere Port facility in Cheshire, which will receive a £50 million investment to focus on electric vehicle manufacturing.
The closure ends nearly 120 years of vehicle production in Luton and comes amid challenging economic conditions and the UK’s stringent zero-emission vehicle (ZEV) mandate. The mandate requires manufacturers to meet aggressive sales targets for electric vehicles, with penalties for non-compliance.
Union representatives condemned the decision, calling it a “slap in the face” for workers, while acknowledging the benefits for Ellesmere Port. The Unite union has urged the government to oppose the closure.
The announcement follows broader struggles in the automotive industry as manufacturers grapple with slowing demand, increased competition, and the transition to electric vehicles. Recent job cuts by Ford and plant closures by Volkswagen highlight the pressures facing the sector.
While industry insiders speculate that Stellantis’s decision reflects excess factory capacity across Europe rather than solely regulatory pressure, it underscores the challenges of balancing investment in electric vehicle production with maintaining profitability.
The UK government has pledged to review the ZEV mandate amid growing industry criticism. However, it is expected to stick to long-term targets for phasing out petrol and diesel vehicles by 2030, with adjustments to implementation rules likely in the short term.
A government spokesperson described the closure as a concerning development but noted Stellantis’s investment in Ellesmere Port as a commitment to the UK’s future in electric vehicle manufacturing.