Luton Vauxhall plant could close as soon as Spring 2025

Vauxhall’s van factory in Luton could stop production as soon as Spring 2025, putting around 1100 jobs at risk.

The Bedfordshire factory currently builds the Vauxhall Vivaro medium-sized van, and had been due to build an all-electric version of the van from next year, alongside its equivalents from Stellantis sister brands Citroen, Fiat and Peugeot.

Instead, Stellantis says it has opened a consultation with employees to close the Luton facility, before expanding its other UK factory at Ellesmere Port in Cheshire.

The expansion of Ellesmere Port is an investment worth around £50 million, and will see the site eventually produce both small and medium-sized electric vans for Citroen, Fiat, Peugeot and Vauxhall. The site will also act as a logistics and warehousing hub for the brands, and would include facilities to build battery packs for the models on-site.

Today, Ellesmere Port already produces the Citroen e-Berlingo, Fiat e-Doblo, Peugeot e-Partner, and Vauxhall Combo Electric small electric vans.

In a statement, Stellantis said it was committed to “acting responsibly towards its employees in Luton,” including offering relocation support for workers willing to work at the Ellesmere Port site if its proposals are accepted.

However, of the estimated 1100 permanent staff currently in Luton, Stellantis says that only “hundreds” of jobs would be relocated to Ellesmere Port.

Stellantis says that its proposal is being made “within the context” of the UK’s ZEV mandate, which currently requires car and van makers to sell a certain percentage of electric models, with hefty fines for those which fail to meet the targets. Those targets are set to rise each year leading to 2035, when the sale of new petrol and diesel cars and vans will be banned. 

Currently, the ZEV mandate sets a target of 26% of sales to be electric in 2026, when manufacturing at the upgraded Ellesmere Port site would be due to begin.

However, it’s expected that the UK Government will enter into a consultation on the targets used as part of the ZEV mandate, having faced backlash from car makers over a lack of support for electric car and van sales. 

In August, Stellantis boss Carlos Tavares threatened plant closures as part of a review of the company’s UK operations if the UK did not revisit its ZEV mandate.

Vauxhall’s Luton plant has a history dating back to 1905, having first opened as part of the brand’s expansion from its previous site in South London. 

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