Major motor factory to close in the UK putting 1,000 jobs at risk

The owner of Vauxhall has announced plans to shut its Luton van-making factory, putting more than 1,100 jobs at risk. Stellantis said it was expecting to close the site in April next year.

The car giant said it forms part of plans to invest £50 million into its Ellesmere Port plant, in Cheshire, to produce all-electric vans in line with Government zero-emission targets. About 1,120 full-time employees work at the Luton factory, which currently makes light commercial vehicles.

Stellantis said it had launched a consultation with employees and union partners on its proposal to consolidate its van production at Ellesmere Port.

It could see hundreds of jobs relocated to the Cheshire-based factory, alongside a plan to support affected staff in Luton, the firm said. It had been due to manufacture Vivaro Electric at its Luton plant from 2025.

Stellantis, which also owns brands including Citroen, Peugeot and Fiat, said it would consolidate its electric van production at its other UK plant in Ellesmere Port. The company said the decision had been made in the "context" of the UK's rules designed to speed up the transition to electric vehicles (EV).

Electric models from other Stellantis brands, including Citroën, Peugeot and Fiat, were also set to be built there. Now, the electric model that had been scheduled for manufacturing at Luton will move to Ellesmere Port, which is to get a £50m cash injection. Production of Stellantis's conventional vans will be transferred to France.