Vauxhall will close its 120-year-old Luton plant in April, putting over 1,000 jobs at risk, parent company Stellantis has announced.
Stellantis said it hopes to transfer hundreds of the 1,100 jobs in Luton to its Ellesmere Port plant in Cheshire, which is set to receive a further £50m cash injection. This follows the news three years ago that Stellantis had earmarked £100m for Ellesmere Port to repurpose the site as a dedicated production facility for electric vehicles (EVs).
The Vauxhall owner cited rules imposed to speed up the transition to EVs as a partial reason for the closure of its Luton plant.
Union Unite said the move was a “complete slap in the face” for its members working in Luton, adding that it stands ready to “whatever it can” to maintain vehicle manufacturing in Luton.
Stellantis has said it will offer “relocation support” and “an attractive package” to employees who want to transfer to Ellesmere Port.
Car makers like Stellantis have called on the government to provide more incentives for consumers to switch to EVs to boost demand. In his latest CEO update, Mike Hawes, Chief Executive of the Society of Motor Manufacturers & Traders (SMMT), said the ZEV transition needs carrots not sticks.
Business Secretary Jonathan Reynolds said Stellantis’s decision to close its Luton plant was a “difficult day” for the town.
Reynolds added that he was “profoundly concerned” about how policies designed to phase out new petrol and diesel vehicles by 2030 were working, and would look into “a better way forward” while still maintaining the target.
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