Vauxhall proprietor Stellantis to close van-making manufacturing facility with greater than 1,100 jobs in danger
Stellantis, the company who own Vauxhall car manufacturers, have announced they are closing their Luton van making factory.
The move will put more than 1,100 jobs at risk. Although there is no official confirmation on why the factory must close, car makers have revealed growing concern amid the push to make the majority of their cars electric in order to keep up with environmental pressures.
The factory, in Luton, focuses on making vans for Vauxhall. According to official company figures, their LCV range meant Vauxhall was the third best-selling brand in the overall van market in 2023. They sold a whopping 34,632 vans.
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This was a 24.8% increase over 2022 in a market that was up by 21%. Now, however, they are closing the doors of the factory for good.
Back in June, Stellantis said they might halt UK production unless the then government did more to boost demand for electric vehicles (EVs). Plenty of manufacturers say the transition to electric is too harsh to keep up with.
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Now, makers are required to sell a certain percentage of cars and vans that emit zero emissions. According to current rules, electric vehicles must make up 22% of a carmaker’s car sales, and 10% of van sales this year.
Firms must pay a huge £15,000 fine for every sale outside of the rules. Stellantis, who also own Citroen, Peugeot and Fiat, also have a factory in Ellesmere Port, which is taking over the can making completely now.
Jonathan Reynolds, current Secretary of State for Business and Trade, is expected to announce a consultation on the rules later on Tuesday. Owners hope this will help save the current market.
Previously, plans were made for the Luton plant to make its medium-sized Vivaro Electric Van from 2025, but now the decision means they will have to halt all production there. Before that, they also made petrol and diesel vans.
Electric models from other brands were also set to be built there. Now these plans will be moved and announced in the coming weeks.
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