26 November 2024, 15:10 | Updated: 26 November 2024, 15:28

Vauxhall owner Stellantis has announced plans to shut its Luton van-making factory, putting more than 1,100 jobs at risk.

Stellantis, which also owns brands including Citroen, Peugeot and Fiat, said it would consolidate its electric van production at its other UK plant in Ellesmere Port.

It is now in consultation with unions and employees over the proposals, which will also see it invest £50 million into the Ellesmere Port factory.

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The decision comes after the company warned in June it may halt UK production unless the then government did more to boost demand for electric vehicles.

The Vauxhall owner said: “Whilst strengthening Ellesmere Port as its sustainable light-commercial vehicle hub in the UK with the transfer of Luton operations, Stellantis remains committed to acting responsibly toward its employees in Luton and, if the company proposal is approved, will offer relocation support to facilitate employees wishing to transfer to the Ellesmere Port site with an attractive package, where hundreds of permanent jobs will be created.

“Dedicated comprehensive job support, including opportunities for retraining for all employees affected, will also be implemented in the very active Luton area, just one mile from the international airport.

“At the same time, 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 by this proposal if it goes ahead.”

A Government spokesman said: “While it’s encouraging to see Stellantis investing in the future of its Ellesmere Port plant, we know this will be a concerning time for the families of employees at Luton who may be affected.

“We have a longstanding partnership with Stellantis and we will continue to work closely with them, as well as trade unions and local partners on the next steps of their proposals.

“The Government is also backing the wider industry with over £300 million to drive uptake of zero emission vehicles and £2 billion to support the transition of domestic manufacturing.”