Vauxhall confirms Luton plant will close in April

The parent company of Vauxhall Motors has informed employees that its van manufacturing plant in Luton will close in April. The Stellantis Group announced the closure last November, ending production at the plant which has been manufacturing vehicles since 1905. The reason for the closure is the planned transfer of its electric van production to another UK plant in Ellesmere Port, Cheshire.

Following the cessation of production at the Luton plant, the machinery and equipment will be transferred to Ellesmere Port. Vauxhall's medium-sized all-electric vans are expected to begin production in 2026. Hazel Simmons, the Labour leader of Luton Borough Council, described the move as "a devastating blow to Luton and the livelihoods of workers."

Simmons stated, "Vauxhall has been an integral part of Luton's heritage for decades." She added, "We did everything we could to prevent this closure, and I am furious about the huge impact this decision will have on so many people's lives."

The Stellantis Group also owns brands such as Citroen, Peugeot, and Fiat. The company previously stated that regulations implemented to accelerate the UK's transition to electric vehicles were partly responsible for its decision. Current regulations require electric vehicles to account for 22% of a manufacturer's car sales and 10% of van sales this year.

Last December, the government called on the automotive company to reconsider its plans to close the plant. Business Secretary Jonathan Reynolds wrote to the company, requesting it to "pause" the redundancies to allow more time to discuss "options to keep the plant open." Regarding the reports that the plant will close in April, he said, "This will be very worrying news for affected workers and their families in Luton." He added, "We will continue to work closely with [Stellantis], the unions, and Luton Borough Council to develop measures to support the local community."

The Stellantis Group stated that it will invest £50 million in the Ellesmere Port plant, making it the company's commercial vehicle center in the UK. The company also stated that employees affected by the layoffs will receive support, including financial assistance, retraining, and wellness programs. In a statement, the company said, "The necessary consultation period with the Unite union has concluded, and the consultation process was detailed and constructive. We are working with all stakeholders to ensure employees receive the best advice about their future. These employees are our priority, and we will continue to treat the Luton workforce responsibly."