Stellantis confirms closure of Vauxhall plant in Luton

Stellantis has confirmed the closure of its Vauxhall van-making factory in Luton, with production scheduled to finish in April.

The factory, which has been operational since 1905, will see its machinery moved to the Ellesmere Port plant in Cheshire, where the company plans to produce Vauxhall's medium all-electric vans from next year with an £50 million investment.

Current UK regulations, which require manufacturers to produce a percentage of EVs in their sales by 2024, are said to have played a role in Steallantis’ November decision to close the factory, citing the shift toward electric vehicles as part of its plan to adapt to market changes.

The UK government, including business secretary Jonathan Reynolds, had requested Stellantis pause redundancies to allow for further discussions about the future of the factory. Reynolds also assured that the government would continue working with Stellantis, trade unions, and the council to provide support for the affected workers.

Around 1,100 jobs are at risk due to the plant’s closure. Stellantis has committed to offering financial aid, retraining opportunities, and wellness support for employees affected by the closure. The company also stated that consultations with Unite the Union have concluded, and it will work with all parties involved to provide the best possible guidance for the workers' futures and fulfills its responsibilities to the local community.

Commenting on Stellantis’ announcement that its Luton plant will shut, 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.”

Hazel Simmons, the Labour leader of Luton Council, called the closure a "devastating blow" to the community and the livelihoods of workers. She expressed frustration over the decision, stating, “Vauxhall has been an integral part of Luton’s heritage for decades.”