Stellantis confirms Luton Vauxhall plant will close in second quarter
Stellantis has confirmed that its Luton Vauxhall plant will close in the first quarter of the year, putting 1,100 jobs at risk.
It had been due to start production of electric vans at the site in the first half of the year, but will now move all UK production to its factory in Ellesmere Port.
The company said the decision, first announced last November, had been made ‘within the context of the UK’s stringent ZEV mandate’, which sets increasing sales targets for zero-emission car and van sales.
The government announced a consultation into the ZEV Mandate in December after vehicle manufacturers said the targets were unviable and threatened future investment in the UK automotive industry.
Luton Vauxhall plant decision
A spokesperson for the company said: “Stellantis confirms its plan to invest £50m to strengthen the Ellesmere Port plant as its UK commercial vehicle hub, demonstrating both its commitment and long-term sustainability to UK production.
“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.
“Production will cease in Luton in Q2 2025, with a period of transforming and transferring machinery and process knowledge to Ellesmere Port. Production of the group’s medium all-electric LCV range in Ellesmere Port will commence in Q4 2026.”
Business and Trade Secretary Jonathan Reynolds said: “We have a longstanding partnership with Stellantis and have engaged with them extensively throughout this process, including discussions over the past week. We will continue to work closely with them, the trade unions and Luton council to put in place measures to support the local community.
“The UK has one of the strongest EV markets in the world and we continue to back our leading electric vehicle industry with £2.3bn as we work closely with them to deliver the transition to cleaner vehicles.”
