Vauxhall‘s iconic 120-year-old plant in Luton is set to close in April, parent company Stellantis has announced. This decision puts over 1,100 jobs at risk, marking a significant moment in the history of British manufacturing. The plant, which specializes in van production, has been a cornerstone of the UK’s automotive sector for more than a century.
Stellantis’ Plan for Impact Mitigation
Despite the closure, Stellantis has outlined measures to mitigate the impact on employees. The company plans to transfer “hundreds” of roles from the Luton factory to its Ellesmere Port site in Cheshire. Stellantis is investing £50 million in the Ellesmere Port facility to expand its capacity for electric vehicles (EV) production, aligning with the government’s zero-emission vehicle targets.
In a statement, Stellantis confirmed that affected employees would be offered relocation support and “an attractive package” for those willing to move from Luton to Cheshire. However, uncertainty remains as consultations with unions and employees continue.
Challenges Facing the UK Automotive Industry
The closure highlights broader challenges for the UK automotive sector, which is grappling with ambitious government targets for zero-emission vehicles. Under current mandates, automakers must ensure at least 22% of sales are zero-emission vehicles by 2024, with this figure rising to 80% by 2030 and 100% by 2035. Manufacturers failing to meet these requirements face financial penalties.
Stellantis’ Managing Director, Maria Grazia Davino, previously warned about the pressures facing UK production. Speaking at an industry event in June, she stated that more needs to be done to boost consumer demand for EVs, or manufacturers may struggle to maintain operations.
The announcement comes just days after Ford revealed plans to cut 800 jobs in the UK as part of a broader reduction by slashing 4,000 Ford workers jobs across Europe, further signalling the strain on the industry.
Concerns About Zero-Emission Policies
Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT), echoed industry concerns during the organization’s annual dinner, describing current zero-emission policies as poorly structured. He warned that these policies could have unintended consequences for manufacturing and employment, particularly as the 2030 deadline for zero-emission targets approaches.
The Workers Union says…
“The closure of the Luton plant underscores the need for clearer, more sustainable policies to support UK workers and manufacturers during this transitional period. While Stellantis’ efforts to relocate employees are commendable, there are still significant concerns about the future of the workforce in Luton and the UK’s ability to remain competitive in the global automotive market. As consultations progress, The Workers Union urges Stellantis and policymakers to prioritize the needs of employees, ensuring that no one is left behind in the shift toward electrification.”
