Union wants Vauxhall factory closure re-think after CEO quits

Unite has called on Stellantis to halt the planned closure of Luton van plant following the resignation of the manufacturer’s CEO Carlos Tavares. 

Stellantis 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, last month.  

It blamed the UK’s zero emission vehicle (ZEV) mandate, which requires more than a fifth (22%) of cars and 10% of vans sold by manufacturers in the UK to be fully electric vehicles (EVs) this year.

Days later Tavares quit over differences in the strategic direction of the company.  

Stellantis, which owns several vehicle brands including Vauxhall, Peugeot, Fiat and Citroen, said that the process to appoint the new permanent CEO is under way, with an announcement expected in the first half of 2025. 

A new Interim executive committee, chaired by John Elkann, will be established until that appointment is made.

Stellantis has started a consultation with its employees and trade unions on the proposal to consolidate its UK manufacturing to its Ellesmere Port site, which includes a further £50 million being spent on the factory in Cheshire.

The union is meeting with Stellantis management today (Friday, December 6) to discuss counterproposals to the site’s closure, with Unite saying that Tavares’ exit gives the company the opportunity to row back on its decision.

Sharon Graham, Unite’s general secretary, said: “The exit of CEO Carlos Tavares is an opportunity for Stellantis to turn the page on years of aggressive anti-worker strategies which now threaten to close a profitable plant which is ready to produce thousands of electric vans next year.

“Unite shop stewards will table counter proposals to management this week, but workers cannot negotiate with a gun to their heads. 

“Stellantis must withdraw the HR1 redundancy notices immediately so workers, management and Government can negotiate the future of this vital electric vehicle factory.”

Stellantis has said that it “remains committed to acting responsibly toward its employees in Luton” and, if the company's proposals are approved, will “offer relocation support to facilitate employees wishing to transfer to the Ellesmere Port site, with an attractive package, where hundreds of permanent jobs will be created”.

“Dedicated comprehensive job support, including opportunities for retraining, for all employees affected will also be implemented in the very active Luton area, just one mile from the international airport,” it added.