Following the announcement that Vauxhall’s Luton plant will shut down in April 2025, the Business Secretary has told Parliament the government did “everything it possibly can” to prevent the closure.
Addressing MPs yesterday, Jonathan Reynolds said: “My right hon. Friend the Secretary of State for Transport and I met Stellantis many times over the summer and again on Tuesday morning to discuss the situation and the acute pressures that the company is facing. We have worked hard to find a solution that would support the business and ensure that people kept their jobs, and we confirmed in writing that we were willing to consider any solution put forward.”
Reynolds acknowledged that the automotive industry in general was feeling many challenges, including “increased costs, supply chain issues and changing consumer demand in a highly competitive, fast-evolving market.”
The Business Secretary was also keen to emphasise that the decision to close its Luton plant was not a signal that Stellantis is retreating from the UK. Indeed, the announced £50m investment in its Ellesmere port facility is a testament to this, he said.
“The investments being made at Ellesmere Port and elsewhere demonstrate that there are real opportunities for UK manufacturing as part of the move to zero emission vehicles, but the transition has to be properly managed,” he added.
Reynolds reiterated that Vauxhall’s Luton exit is “a bitter blow to our car industry, to Luton, and to the workers who made Vauxhall a world-class brand, producing world-class cars and vans.”
The Business Secretary finished his address by emphasising that “decarbonisation must not mean deindustrialisation.” He added that “winning the race to net zero and having a world-leading automotive sector must go hand in hand.”
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