Luton is reeling from the news that Vauxhall is set to sever its long-standing link with the city after parent company Stellantis announced plans to close its factory after 120 years.
Stellantis, which also controls the Fiat, Peugeot and Citroen brands, blamed the government’s EV sales targets for its decision to close the plant, which first opened in 1905 and has been making vans for nearly 100 years.
The Luton factory was due to undergo a revamp to build electric versions of its Vivaro vans before pulling the plug on Tuesday afternoon. This shocked employees who had worked at the plant for decades.
Workers at the factory were yesterday informed of plans to consult on plans to close Luton, as well as a £50 million investment in its Ellesmere Port facility in Cheshire, allowing it to build vans 140 miles away.
More than 1,100 jobs are at risk. But Stellantis says ‘hundreds’ of roles will be transferred to other plants as the relocation package is delivered.
Luton Council leader Hazel Sim said the news was a ‘devastating blow’ to the town.
Some, including one forklift driver, were off shift and had to learn from messages on WhatsApp. Workers described the move as ‘absolutely rubbish’.
“There are a lot of people there, a lot of people nearing retirement and young people. It will be a huge blow to the village,” the man said. BBC anonymously.
Workers were shocked by the news that the Vauxhall Luton factory was closing after 120 years. (2018 factory stock image)
Vauxhall’s parent company Stellantis previously announced plans to convert its Luton factory to build electric Vivaro vans.
Business Secretary Jonathan Reynolds said the government had ‘heard’ car companies’ concerns about mandatory ZEV electric vehicle sales targets.
Luton Council leader Hazel Simmons said the news was a ‘devastating blow’.
‘There are many people who rely on Vauxhall for parts supply, so I think it will have a big impact.
‘It will be a huge blow to the village. ‘It’s going to be huge.’
Cllr Hazel Simmons MBE, leader of Luton Council, said: ‘Today’s news that Vauxhall plans to close its van manufacturing plant in Luton is a devastating blow to our town.
Luton Vauxhall history
- 1905: Vauxhall moves from south London to its factory on Kimpton Road, Luton.
- 1914 – 1918: The company supplies automobiles for the war effort during World War I.
- 1925: American company General Motors (GM) acquires Vauxhall.
- 1931: Vauxhall’s Bedford range of trucks and buses begins production in Luton.
- 1940s: The company produces trucks and later Churchill tanks for the war effort in World War II. 39 workers killed in German bombing
- 1950s: Truck production moved to Dunstable, but Bedford vans were produced in Luton until the late 1980s.
- 1989: £50m modernization of Luton factory begins.
- 2002: Vauxhall closes its car plant in Luton, losing around 1,900 jobs, but continues to produce vans.
- 2017: French PSA Group, which includes Peugeot and Citroen, acquires GM’s European division, which includes Vauxhall.
- 2021: Group merges with Fiat Chrysler to form Stellantis
- November 2024: Stellantis announces the closure of its Luton plant, putting 1,100 jobs at risk.
‘First and foremost our thoughts are with our staff and their families who have heard this very sad news.
‘We stand ready to assist in any way we can and will be meeting with factory management and trade unions to discuss what practical help we can give at this time.
‘When other companies close locally, we have an excellent track record of supporting our staff to find alternative employment using their transferable skills, and we are committed to doing the same in local Vauxhall communities where relocating to Ellesmere Port is not feasible. We are doing our best to perform.
‘We are also seeking clarity from the government on what support it can provide to employees at this time.
‘Vauxhall has been an integral part of Luton’s heritage and today is a sad day for our town. Following today’s news, we will be doing the same.’
Stellantis chief executive Carlos Tavares threatened to scale back the company’s presence in the UK in the summer in response to the government’s plans for a zero-emission vehicle (ZEV) mandate.
Ford plans to cut 800 jobs in the UK in the next few years, while Nissan has warned that the plan will cause irreparable damage to the UK’s car manufacturing industry if it remains in place.
The ZEV mandate requires all car companies to ensure that 22% of the cars they sell this year are pure electric or face punitive fines of up to £18,000 per non-compliant vehicle sold above the threshold.
Last night Business Secretary Jonathan Reynolds said the Government had ‘listened’ to the generosity of car companies as it seemed clear many would not meet their targets.
Addressing industry leaders at the center LondonMr Reynolds admitted he was ‘seriously concerned’ about how Rishi Sunak’s policy of EV sales obligations would work in practice.
He said the closure of Vauxhall only confirmed what we knew about the scale of the challenge facing the industry.
The consultation will set out a ‘better way forward’ to achieve the wider goal of a new phase-out. gasoline He claimed that diesel vehicles would be introduced by 2030.
He said: ‘To be honest, I don’t believe that the policies we inherited, especially those related to zero-emission cars, are working today in the way anyone intended.’
Some large automakers and groups are falling behind their battery electric vehicle sales targets, according to research by This is Money.
The Vauxhall Luton factory is located just one mile from Luton Airport (pictured 2002).
As of October, 18.1% of cars sold in the UK this year were electric. This is far behind the target of 22%.
Unite the Union, which earlier this month called on Stellantis to commit to the future of its Luton factory, called the move an ‘absolute insult’.
‘The proposals tabled today are a complete slap in the face to our members in Luton, where Vauxhall vehicles have been manufactured for 120 years,’ a spokesman said last night.
‘Whatever positive benefits this plan may bring to Ellesmere Port, it is unacceptable.
‘We stand ready to support our members to do all they can to ensure historic vehicle manufacturing remains in Luton, and we urge the Government to do the same.’
Stellantis has branded its plans a ‘proposal’ but auto industry insiders believe the move is effectively a done deal.
It said workers who want to stay in Luton if they move to Cheshire will be offered support to help them retrain and find new jobs.
The company declined MailOnline’s request for an interview last night.
Mike Hawes, chairman of the Society of Motor Manufacturers and Traders (SMMT), warned that the sales threshold could cost the industry almost £6 billion this year alone, with £2 billion of that coming from ZEV mandate fines alone..
At the trade body’s annual dinner last night, Mr Hawes told the audience: ‘Jobs are at stake.’
