Vauxhall confirms Luton plant will close in April

Vauxhall’s Luton factory, a site with over a century of history, is set to close in April.

Parent company Stellantis announced the closure last November, citing plans to consolidate electric van production at Ellesmere Port. Production of Vauxhall’s medium all-electric vans is slated to begin at Ellesmere Port in 2026, following the transfer of machinery from Luton.

This decision has been met with strong reactions. Hazel Simmons, the Labour leader of Luton Council, called it a “devastating blow” and expressed anger at the impact on local workers and their families. She emphasized Vauxhall’s long-standing connection to the town’s heritage.

Stellantis attributed the decision partly to UK regulations aimed at accelerating the shift to electric vehicles. Current rules mandate that EVs comprise 22% of a manufacturer’s car sales this year, and 10% of van sales.

Business Secretary Jonathan Reynolds has requested that Stellantis “pause” redundancies to allow for further discussions regarding potential options to keep the plant operational. He acknowledged the concern for affected employees and their families and pledged to work with Stellantis, trade unions, and the council to provide support.

Stellantis has committed to investing £50m in the Ellesmere Port plant, transforming it into the company’s UK commercial vehicle hub. They have also stated that affected employees will receive support, including financial assistance, retraining opportunities, and wellness sessions. The company’s statement highlighted the completion of a “detailed and constructive” consultation period with Unite the Union and their commitment to supporting employees during this transition.