Vauxhall plant closure confirmed as council expresses anger at Stellantis decision
The decision to close the Vauxhall plant in Luton will lead to job losses and economic disruption despite efforts to keep it open.
Last updated 5th Feb 2025
Luton Council has expressed deep disappointment and frustration over Stellantis’ decision to close the Vauxhall plant in Luton, despite multiple proposals to keep it open being rejected.
The closure, which was announced by Vauxhall’s owner Stellantis late last year, is expected to result in significant job losses and economic disruption. As one of Luton’s largest employers, the plant has played a major role in the local economy, supporting not only its own workforce but also supply chain businesses and local services.
Cllr Hazel Simmons MBE, Leader of Luton Council, said, “This is heartbreaking news and a devastating blow to Luton and the livelihood of the workers. Vauxhall has been an integral part of Luton’s heritage for decades. We did what we could to try and stop this closure going ahead and I feel angry that this decision will massively impact the lives of so many people.
“This is news the workers and their families would have been dreading to hear and we want them to know we are behind them and will support them all we can.
“It’s not just them who are affected. This will impact the whole town. With job losses at the plant as well as the wider supply chain, it will have a huge impact on the local economy, but we will recover from this.”
Since the initial announcement, the council has been working with trade unions, local MPs, and the government to present alternative solutions to keep the site operational. Despite these efforts, Stellantis has confirmed that the plant will close, leaving the council to focus on supporting affected workers.
Plans are in place to help employees find alternative work, including partnerships with businesses in Luton and surrounding areas to match workers with relevant skills to new job opportunities. The council will also provide upskilling, reskilling, and retraining programmes through Luton Adult Learning, as well as organise job fairs tailored to those affected.
Business and Trade Secretary Jonathan Reynolds acknowledged the concerns and reassured that support measures would be in place. “This news will be deeply concerning for the employees at Luton who will be affected and their families,” he said. “We have a longstanding partnership with Stellantis and have engaged with them extensively throughout this process, including discussions over the past week and today. We will continue to work closely with them, the trade unions, and Luton Council to put in place measures to support the local community.”
Luton Council is now in discussions with Stellantis to explore the possibility of acquiring the site to ensure its future development benefits the local economy. The government has also tasked the council with forming a locally led taskforce to coordinate the response to the economic impact of the closure.
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 production of the group’s all-electric small LCV range* (eK9) and the medium all-electric LCV range# (eK0), all in right-hand drive, will be combined at Ellesmere Port".
"Production will cease in Luton in Q2 2025, with a period of transforming and transferring machinery and process knowledge to Ellesmere Port. Production of the group’s medium all-electric LCV range (eK0) in Ellesmere Port will commence in Q4 2026."