Stellantis, owner of the Vauxhall brand in the UK, has confirmed that it will close its Luton van-making plant in April, following a period of consultation with the workers’ labour union, Unite.
The decision, which follows Stellantis’ announcement in November 2024, marks the end of more than a century of vehicle production at the site.
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Following Stellantis’ announcement last year, the UK Business Secretary Jonathan Reynolds urged the company to reconsider.
Reynolds requested the company to “pause” redundancies, allowing more time for discussions on possible alternatives to keep the plant operational.
Once operations cease in Luton, machinery from the site is planned to be relocated to the firm’s Ellesmere Port facility on Merseyside.
Production of Vauxhall’s medium all-electric vans will then commence in 2026, reported BBC News.
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By GlobalDataThe transition is part of Stellantis’s strategy to concentrate electric vehicle (EV) production in the UK and turn its Ellesmere Port plant into a hub for electric van production.
In response to Stellantis’s decision, Luton Council Labour leader Hazel Simmons said: “This is heartbreaking news and a devastating blow to Luton and the livelihood of the workers.
“Vauxhall has been an integral part of Luton’s heritage for decades. It’s not just them who are affected. This will impact the whole town. With job losses at the plant as well as the wider supply chain, it will have a huge impact on the local economy, but we will recover from this.”
Commenting on the latest move, Reynolds said: “We have a longstanding partnership with Stellantis and have engaged with them extensively throughout this process, including discussions over the past week and today.
“We will continue to work closely with them, the trade unions and Luton council to put in place measures to support the local community.”
The company assured that employees affected by the job losses will receive financial aid, opportunities for retraining, and wellness sessions to aid in their transition.
Stellantis was quoted by BBC News as saying in a statement: “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.
“These employees are our priority and we will continue to act responsibly towards those in Luton.”
Despite these appeals, Stellantis is planning to investment £50m into the Ellesmere Port plant as it transforms into the firm’s UK commercial vehicle hub.
