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European auto giant Stellantis said Tuesday it will shut its van-making factory in Luton, north of London, putting hundreds of jobs at risk as it plans to focus production elsewhere in the UK.
The company plans to strengthen its electric vehicle (EV) production hub in Ellesmere Port, northwest England, as it contends with what it calls the UK’s “stringent” zero emission vehicle mandate that requires a certain amount of carmaker’s sales to be EVs.
Over 1,100 full-time employees currently work at the Luton site and could be transferred to the Ellesmere Port factory, “where hundreds of permanent jobs will be created,” the Vauxhall owner said.
“Stellantis will work with local government and local employers to identify new employment opportunities within the Luton area for Stellantis employees who might be impacted,” the company said in a statement.
Stellantis, whose brands include Peugeot, Fiat and Chrysler, said it plans a £50 million ($63 million) investment in the Ellesmere Port site.
The company warned in July that it could halt production in Britain should the Labour government fail to provide greater help with the transition to electric vehicles.
The previous Conservative government delayed by five years to 2035 a ban on the sale of new petrol and diesel vehicles.
The new Labour government has pledged to revert to the original 2030 date.
Britain’s automobile trade body called in October for the government to give manufacturers greater support to boost sales of electric vehicles as it said EVs’ share of new car sales was set to miss the government’s targets.
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