Vauxhall owner Stellantis has reaffirmed its plans to close its Luton van factory this year despite mounting pressure from Government, unions and local residents to reconsider.
The move, announced in November, puts some 1,100 jobs at risk with its workforce in Bedfordshire offered roles at its Ellesmere Port plant 150 miles away in Cheshire where all electric van production will be moved in 2025.
The decision will see the Luton plant shutter its doors having produced commercial vehicles for almost 100 years, with the first panel vans rolling off its assembly line in 1932.
A date has not been finalised for the closure, but the process will begin in the second quarter of the year – between April, May and June – the vehicle maker said.
In what appeared to be a swipe at the Government’s strict electric vehicle sales targets between now and 2035, Stellantis claimed the decision was made ‘within the context of the UK’s ZEV (zero emissions vehicle) mandate’.
However, in January it announced it was one of few manufacturers to adhere to the required quotas for cars and vans in 2024.
In comments given to Luton Today, a spokesperson for the car maker said it is now ‘engaging with all interested parties to ensure that the employees have the best possible advice for their future’.
Union representatives responded in force on Wednesday, describing the move as a ‘betrayal’ and ‘total disgrace’.
While there have been discussion with ministers and other key stakeholders in a bid to secure a future for the Luton plant and its workers, Stellantis has reiterated its commitment to move forward with the closure.
Business and Trade Secretary Jonathan Reynolds said the Government had engaged with Stellantis ‘extensively’ over the consultation period amid the ‘deeply concerning’ impact on workers.
Employees and locals expressed their shock and disappointment regarding the decision to MailOnline in November, with many hoping a solution could be found to keep the factory open.
Yet a spokesperson for the manufacturer affirmed this week: ‘Stellantis confirms its plan to invest £50million to strengthen the Ellesmere Port plant as its UK commercial vehicle hub, demonstrating both its commitment and long-term sustainability to UK production.
‘The required consultation period with Unite the Union, which has been detailed and constructive, has now finished and we are engaging with all interested parties to ensure that the employees have the best possible advice for their future.
‘Production will cease in Luton in Q2 2025, with a period of transforming and transferring machinery and process knowledge to Ellesmere Port.
‘Production of the group’s medium all-electric LCV range (eK0) in Ellesmere Port will commence in Q4 2026.’
Luton plant closure a ‘betrayal’
Sharon Graham, general secretary of the Unite union, 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.’
Colin Walker, Head of Transport at the Energy & Climate Intelligence Unit, said the news was ‘a tragedy for the community in Luton’ before blasting Stellantis’ claim that the decision to close the factory was made in light of the Government’s EV sales targets
‘While the ZEV mandate has been in effect for little more than a year, the plant’s future has been under threat for decades,’ Walker said.
‘In 2023, before the ZEV Mandate had even come into effect, the company was blaming Brexit for the plant’s difficulties.
‘Just one month ago, Stellantis was putting out press releases proudly announcing that it had complied with the Government’s EV sales targets in their first year.
‘When the shuttering of the Luton plant was announced last year, industry experts said at the time that it looked like the company was choosing to blame the Government for a closure that would have happened anyway. The reality is that the mandate is working.’
The news comes after official figures showed that UK car making fell to 1950s levels in 2024, declining 14 per cent year-on-year to 779,584 units in total.
In contrast, production of commercial vehicles rose by 4 per cent to 125,649, with Stellantis being one of the biggest producers of all in the country.
Luton Borough Council told the local newspaper that it is ‘extremely disappointed and angry at Stellantis’ decision to close Luton’s Vauxhall plant after numerous options put forward to keep the plant open were rejected’.
