Stellantis to close Vauxhall Luton factory

Stellantis has confirmed that it will close its Vauxhall Luton factory next April, partly blaming challenges around the ZEV Mandate.

The site, which has been open since 1905, employs 1,100 people and manufactures electric vans.

Stellantis has said it will now move its electric van manufacturing operations in the UK to its Ellesmere Port factory, which builds Vauxhall, Peugeot and Citroen electric vans.

It plans to transfer hundreds of jobs from Luton to its Cheshire site, which will also receive a £50m injection to support further production.

Stellantis said: “Whilst strengthening Ellesmere Port as its sustainable light-commercial vehicle hub in the UK with the transfer of Luton operations, 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. 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.”

Vauxhall Luton factory

The government has said it will continue to work with Stellantis to ensure its future in the UK and support affected workers in Luton.

A 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.”