Vehicle group Stellantis has announced plans to close the Luton factory, cancelling its previous intention to manufacturer its respective brands’ medium electric vans at the long-established plant.
The group has said that it is instead intending to focus on the Ellesmere Port site in Cheshire, investing £50m in creating what it calls an ‘all-electric, sustainable vehicle hub.’ The move represents a swift U-turn, as Stellantis only announced in February that the Luton factory would be the new home for Citroen, Fiat, Peugeot and Vauxhall’s medium electric vans.
The plan is for these to now be made at Ellesmere Port, alongside the brands’ small electric vans.
Jobs at risk
The move has not yet been finalised, with Stellantis entering into consultation with employees and Trade Unions, but could see as many as 1,100 positions at risk. The company has said that the move will create ‘hundreds of new jobs’ in Cheshire, and there will be relocation support in place to assist employees that wish to move.
It has also said it will assist with retraining and job hunting for those that don’t make the move. The closure would be a notable blow to the local economy, as the plant is the oldest vehicle production site in the UK, and it would have been due to celebrate its 120th anniversary in 2025 having opened in 1905.
The Luton factory has seen some notable models roll off its production line over the years, having made the likes of the Vauxhall Cavalier, Viva and Vectra. The final passenger car was made at the site in March 2002, and since then the factory has concentrated on commercial vehicles. The Vauxhall Vivaro has been made there since 2001 and the plan was for the electric Citroen Dispatch, Fiat Scudo and Peugeot Expert to join it.
The decision comes at a time when the Zero Emission Vehicle Mandate has been under scrutiny, with commercial vehicle sales falling behind the proposed targets. Currently 10% of van sales have to be electric in 2024, but they only account for 5.1% as of the end of October.
Ellesmere Port investment
Stellantis invested £100m in its Ellesmere Port plant as recently as 2021, and this move will see a further £50m put into the facility.
2021 saw the creation of a new body shop, upgrades to the general assembly and the creation of an on-site battery pack assembly area. The new investment will, in part, go towards making the site carbon neutral by 2030.
