Vauxhall owner to shut Luton factory amid ‘stringent’ zero-emission targets

The proprietor of Vauxhall and Citroen has said plans to unopen its Luton van-making mill and make an all-electric works travel amid “stringent” UK Government zero-emission targets.

Stellantis announced plans to unopen the Luton mill adjacent April, putting much than 1,100 jobs astatine risk.

Business Secretary Jonathan Reynolds said it was a “very hard time for Luton” pursuing the announcement.

The closure forms portion of the group’s connection to consolidate its UK manufacturing of vans to make an all-electric hub astatine its Ellesmere Port works successful Cheshire.

It is acceptable to put £50 cardinal successful the Ellesmere Port site, having invested £100 cardinal 3 years agone successful a displacement to battery-electric production.

We person a longstanding concern with Stellantis and we volition proceed to enactment intimately with them, arsenic good arsenic commercialized unions and section partners connected the adjacent steps of their proposals

Government spokesman

Stellantis said the determination was made wrong the discourse of the “stringent” UK zero-emission conveyance mandate.

Under the existent rules, this requires 22% of each caller car income to beryllium battery-electric vehicles successful 2024, with the people rising to 80% by 2030 and 100% successful 2035.

Last week, ministers met with automotive leaders to sermon the income quotas for electrical vehicles.

Carmakers and retailers person expressed fears that the mandate is putting jobs astatine hazard astatine UK conveyance factories and piling unit connected manufacturers.

Concerns person besides been raised implicit a deficiency of charging infrastructure crossed the state to enactment the modulation to electrical vehicles.

The announcement from Stellantis besides comes a week aft Ford announced it volition chopped astir 800 roles crossed the UK implicit the adjacent 3 years amid unit from “lower-than-expected demand” for its electrical cars.

About 1,120 full-time employees enactment astatine the Luton factory, which presently makes airy commercialized vehicles.

Stellantis said it had launched a consultation with employees and national partners connected its proposals.

If they are approved, hundreds of imperishable jobs volition beryllium created astatine the Cheshire-based mill for affected unit who privation to relocate, the steadfast said.

Stellantis besides said it would connection occupation support, including opportunities for retraining, to each those impacted – and volition enactment with section authorities and employers to find caller enactment for Luton-based employees.

A spokesperson for the Government said: “While it’s encouraging to spot Stellantis investing successful the aboriginal of its Ellesmere Port plant, we cognize this volition beryllium a concerning clip for the families of employees astatine Luton who whitethorn beryllium affected.

“We person a longstanding concern with Stellantis and we volition proceed to enactment intimately with them, arsenic good arsenic commercialized unions and section partners connected the adjacent steps of their proposals.

“The Government is besides backing the wider manufacture with implicit £300 cardinal to thrust uptake of zero-emission vehicles and £2 cardinal to enactment the modulation of home manufacturing.”

Stellantis plans to person the consolidated accumulation enactment astatine Ellesmere Port successful cognition by the 2nd fractional of 2026.

The Ellesmere Port mill makes battery-electric airy commercialized vehicles including for Vauxhall, Citroen, Peugeot and Fiat.

The carmaker said the plans could lend to making its accumulation much efficient.