Stellantis, the parent company of Vauxhall, has decided to close its Luton manufacturing plant, a move that jeopardises approximately 1,100 jobs. The decision is part of a broader strategy to consolidate production and prioritise electric vehicles (EVs). The £50 million investment in expanding Ellesmere Port into an EV-exclusive facility solidifies the shift, as the site becomes a global hub for electric van production.
Ellesmere Port’s transformation builds on a £100 million earlier investment and aligns with Stellantis’ “Dare Forward 2030” plan, targeting global carbon neutrality by 2038. This addition investment makes it the first battery electric vehicle-dedicated plant globally for Stellantis.
While this modernisation highlights the company’s commitment to sustainable production, the closure of Luton will have significant ramifications. The local economy, heavily reliant on the plant, faces challenges, including job losses and reduced business activity.
Local union representatives have criticised the decision, emphasising the need for government action to secure the UK’s manufacturing base. Industry experts warn this closure could signal reduced confidence in the UK vehicle market, especially with increasing competition from international EV manufacturers.
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.
Stellantis intends to remain the UK market leader in electric LCVs, with over 32,000 vehicles already sold in the country since launch and will continue to be the only volume manufacturer of LCVs in the UK.
