Vauxhall to close Luton van factory, 1,100 jobs at risk with shift to Ellesmere Port

Vauxhall is to close its van manufacturing plant in Luton, a move that could impact 1,100 jobs.

Parent company Stellantis said it now plans to transfer van production from Luton, Bedfordshire, to its factory in Ellesmere Port in Cheshire, citing the UK's challenging economic conditions and the government's zero-emission vehicle (ZEV) mandate as key factors behind the decision.

This new development signals a shift in Stellantis's strategy as it consolidates UK light commercial vehicle manufacturing on one site and follows Ford's decision to cut 4,000 jobs across Europe, including 800 in the UK.

The Luton plant, which employs 1,100 people, will see some of its workers offered relocation to Ellesmere Port, where Stellantis plans to add several hundred new jobs.

The company said it aims to achieve “greater production efficiency” at Ellesmere Port, a site with room for expansion. To support the transition, Stellantis is investing £50 million to upgrade the Cheshire facility for increased van production.

Employees at Luton were informed of the decision on Tuesday, less than a year after Stellantis had committed to producing medium-sized electric vans for Vauxhall, Citroën, Peugeot, and Fiat Professional at the site.

Despite this reversal, Stellantis reiterated its commitment to responsible handling of the situation, pledging relocation support with attractive packages for those moving to Ellesmere Port.

Additionally, the company promised comprehensive job support, retraining opportunities, and collaboration with local authorities and businesses to create new employment options in the Luton area.

In February, Stellantis had announced plans to produce medium-size electric vans for Vauxhall, Citroen, Peugeot and Fiat Professional. at the Luton plant from 2025, alongside internal combustion vehicles.