Over 1000 jobs at risk as Stellantis set to close Luton van factory

The plans have put around 1,100 staff at the Luton plant on notice, although Stellantis claims some of these jobs could be transferred to its Ellesmere Port plant in Cheshire, which will receive £50m of new investment under the restructuring. 

Stellantis said the decision has been ‘made within the context of the UK’s ZEV Mandate’, a government policy that dictates EVs must make up a certain percentage of carmakers’ sales each year. On the same day that the Luton closure was announced (26 November 2024), the SMMT claimed the ZEV Mandate would cost the automotive sector a total of £6bn this year in discounts and credits if targets were to be met.

In February 2024, Stellantis announced that the Luton site would manufacture medium-sized electric vans from 2025, seemingly securing jobs at the historic facility. However, the decision to consolidate Luton operations into the Ellesmere Port plant has come less than a year later, as EV sales around the world have slowed.

In 2021, Stellantis invested £100m into Ellesmere Port to convert the facility to battery-electric light commercial vehicle (LCV) production. The plant manufactures small LCVs across the Stellantis portfolio, including the Citroën ë-Berlingo, Vauxhall Combo Electric, Opel Combo Electric, Peugeot E-Partner and Fiat Professional E-Doblo. It’s claimed that relocation support will be available to Luton employees willing to transfer to Ellesmere Port.

Responding to the announcement, a spokesperson from the Unite union said: “The proposal that has been tabled today has been a complete slap in face for our members in Luton, where Vauxhall vehicles have been manufactured for 120 years. Whatever the positive benefits this plan may have for Ellesmere Port, that is not acceptable.

“We stand ready to support our members in doing whatever we can to ensure that historical vehicle manufacturing is maintained in Luton and we call on the government to do the same.”