Stellantis to close Luton plant putting 1,000-plus jobs at risk

Stellantis has announced plans to consolidate its electric van production in the UK at its Ellesmere Port plant, closing its factory in Luton and putting 1,100 jobs at risk.

The owner of four van brands, Vauxhall, Citroen, Peugeot and Fiat, blamed the UK’s zero emission vehicle (ZEV) mandate.

It requires more than a fifth (22%) of cars and 10% of vans sold by manufacturers in the UK to be electric this year.   

The targets become tougher each year ahead of the 2030 phase out date for petrol and diesel vehicles.

Manufacturers will face fines of £15,000 for each vehicle sold outside the target, but the reality of the targets is not as clear-cut as this, as there are several alternative ways for manufacturers to meet compliance. 

There has been growing disquiet about the pace of change amongst carmakers, with ministers meeting representatives from the auto industry, including Stellantis, for crunch talks last week (Wednesday, November 20). 

The Government welcomed the investment in the future of the Ellesmere Port plant, but said it knows this will be a “concerning time for the families of employees at Luton who may be affected”.

Earlier this year, Stellantis announced that its Luton plant would start producing electric vans for Vauxhall, Citroen, Peugeot and Fiat Professional from the first half of 2025.  

The move to what the manufacturer described at the time as “limited production” of the group’s all-electric medium vans followed  the transformation of Ellesmere Port into the UK’s first electric vehicle-only volume manufacturing plant, last year. 

The Luton plant was expected to produce the fully electric Vauxhall Vivaro Electric, Opel Vivaro Electric, Peugeot E-Expert, Citroen e-Dispatch and Fiat Professional E-Scudo in both right and left-hand drive.

Production of the equivalent internal combustion engine (ICE) vans were also expected to continue alongside the electric versions.

The news from Stellantis comes just days after Ford announced it was cutting 800 jobs in the UK over the next three years, blaming a weaker demand for electric vehicles (EVs).