Luton Borough Council in talks to acquire Vauxhall plant site
It hopes to protect the town and region's economy from an estimated £310 million loss
Luton Borough Council is in negotiations to acquire the Stellantis' Vauxhall manufacturing site following the company's decision to close the factory in April.
The Council hopes to secure the site for future economic benefit, as the town braces for the impact of the closure on thousands of workers and their families.
Cllr Hazel Simmons, Leader of Luton Borough Council, said: "We've been working with Stellantis, the unions, MPs over the last few months to try and find alternative options to keeping the plant open, and each of the recommendations has been turned down by Stellantis.
"So yeah, really devastated for the people that work there and also for the town."
Steve O’Donnell, Unite the Union's Regional Officer, echoed the frustration felt by workers over Stellantis’ refusal to consider alternatives.
Speaking to Greatest Hits Radio, he said: "We are obviously disappointed with the decision, albeit it was expected because we’d heard rumblings for quite some time.
"Unite put together a counterproposal to try and retain some production at the plant and have a phased closure, but this was rejected by the company.
"So while we’re not surprised, we are still extremely disappointed."
With the closure now confirmed for the end of April, Luton Borough Council is focused on supporting affected workers and mitigating the wider economic impact.
A key priority for the Council is securing the site itself, given its strategic location within Luton.
"It's a massive site in in the middle of our town," added Ms Simmons. "It's an industrial site and we would like to make sure that if possible, we could purchase it and that there is economic benefit of the people that live here."
Cllr Simmons acknowledged speculation about potential buyers, particularly given the site’s proximity to Luton Airport, but emphasised that no such discussions had taken place.
Those concerns are already brewing at Unite, who suspect the site would be sold on to benefit the drive for aviation expansion.
Mr O'Donnell said: "it's a big, devastating blow to the local economy, and of course these are highly skilled jobs that are operating out that plant.
"The likelihood is that plant is going to be sold to people that might run logistics from the airport, so you're transitioning highly skilled jobs to low skilled, low paid jobs, often un-unionised jobs."
In the meantime, the Council has estimated that the total economic impact of the closure, including supply chain effects, could reach £310 million.
As discussions with Stellantis continue, the Council is also seeking to ensure that the company leaves behind a lasting contribution to the town, having formed part of its identity for 120 years and seen generations of families dedicating their livelihoods to working at the plant.
In a statement, a Stellantis spokesperson said: "The required consultation period with Unite the Union, which has been detailed and constructive, has now finished and we are engaging with all interested parties to ensure that the employees have the best possible advice for their future"
"These employees are our priority and we will continue to act responsibly towards those in Luton. Our focus will now be to work closely with the Trade Union to support employees who may be impacted. This will include financial support, relocation support for those who wish to transition to Ellesmere Port and onsite support activities, such as job fairs, CV writing, retraining support and wellness sessions".
The full closure of the site is expected for the end of April.