The owner of Vauxhall, Stellantis, has confirmed plans to close its van-making factory in Luton this April, resulting in up to 1,100 workers job losses. The decision follows the company’s announcement in November to consolidate its electric van production at its Vauxhall Motors Ellesmere Port facility in Cheshire.
The Luton plant, which has been manufacturing vehicles since 1905, will cease operations as part of Stellantis’ strategic shift towards electric vehicle (EV) production. Following the shutdown, machinery from the site will be relocated to Ellesmere Port, where production of Vauxhall’s medium all-electric vans is set to commence in 2026.
Labour leader of Luton Council, Hazel Simmons, described the decision as a “devastating blow to Luton and the livelihood of the workers being selected for redundancy.” She expressed frustration, stating: “Vauxhall has been an integral part of Luton’s heritage for decades. We did what we could to try and stop this closure going ahead, and I feel angry that this decision will massively impact the lives of so many people.”
Stellantis, which also owns Citroën, Peugeot, and Fiat, previously cited the UK’s stringent EV transition rules as a factor in its decision. Under current regulations, EVs must account for 22% of a manufacturer’s car sales and 10% of van sales in 2024.
The government had intervened in December, urging Stellantis to reconsider its closure plans. Business Secretary Jonathan Reynolds wrote to the company requesting a pause on redundancies to allow discussions on potential alternatives to keep the factory open.
Responding to reports of the imminent closure, Reynolds stated: “This news will be deeply concerning for the employees at Luton who will be affected and their families. We will continue to work closely with Stellantis, unions, and Luton Council to put in place measures to support the local community.”
Despite the Luton shutdown, Stellantis announced a £50 million investment in Ellesmere Port, positioning it as the firm’s UK commercial vehicle hub. The company has assured affected employees that they will receive financial aid, retraining, and wellness support.
In a statement, Stellantis confirmed the conclusion of consultations with unions, describing the discussions as “detailed and constructive.” The company added: “The required consultation period with unions 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.”
The closure of the Luton plant as previously highlighted by TWU marks the end of over a century of automotive manufacturing in the town, leaving many workers and local leaders grappling with the impact of this major industrial shift.
The Workers Union Says…
TWU strongly condemned the closure, calling it a “short-sighted decision that disregards the long-standing contributions of Luton’s workforce.” A spokesperson for the union stated: “This move is devastating for workers and their families. We must work together to find a viable alternative that keeps these jobs in the UK. Our members deserve better.”
