Vauxhall owner announces factory closure date

Vauxhall’s owner Stellantis has informed staff that it will close its Luton factory in April.

Unite the Union labelled the move a “disgrace” and a “betrayal of its Luton workforce”.  

Stellantis revealed plans to consolidate its electric van production in the UK at its Ellesmere Port plant by closing the Luton factory in November.  

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

Machinery at the plant, which has been making vehicles since 1905, will be transferred to Ellesmere Port, where production on Vauxhall’s medium all-electric vans will start next year.

Stellantis invested £100 million in Ellesmere Port in 2021, to transform the facility to battery-electric light commercial vehicle (LCV) production, making it the first battery electric vehicle-dedicated plant globally for Stellantis. 

Today, it is the UK’s first and only volume EV-only manufacturing facility, building the company’s small LCV range of Citroën ë-Berlingo, Vauxhall Combo Electric, Opel Combo Electric, Peugeot E-Partner and Fiat Professional E-Doblo.

Stellantis says it will invest a further £50m in the Ellesmere Port plant and employees affected by job losses will receive support including financial aid, retraining and wellness sessions.

In a statement, it said: “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.”

However, the announcement was met by anger from Unite. General secretary Sharon Graham said: “Stellantis’ betrayal of its Luton workforce, who have delivered every target asked of them, is a total disgrace.

“Once again, UK workers have been exposed to a company willing to sacrifice our manufacturing base for fleeting gains - this has to change. 

“We urgently need an industrial strategy that puts the national interest at the heart of decision making in manufacturing, as they do in other countries.”

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