Stellantis plan to close Luton Vauxhall van factory
The closure puts over 1,100 jobs at risk
Last updated 26th Nov 2024
Stellantis has announced plans to close its van manufacturing site in Luton by April 2025, putting over 1,100 jobs at risk. The company, which owns Vauxhall, hopes to transfer hundreds of jobs to its Ellesmere Port factory, where it plans to invest £50 million.
The announcement comes as Stellantis enters into consultation with unions and employees regarding the proposals. The company is also committed to providing relocation support for employees who may wish to move to Ellesmere Port, offering an "attractive package" as part of the transition. Stellantis says the move will strengthen Ellesmere Port as the UK’s sustainable light-commercial vehicle hub, creating hundreds of permanent jobs at the site.
A spokesperson for Stellantis 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.”
In addition to the relocation support, the company will provide retraining opportunities and other job assistance for affected employees. Stellantis also intends to work with local authorities and employers in Luton to identify alternative employment options for workers who may not relocate.
Rachel Hopkins, Labour MP for Luton South and South Bedfordshire, expressed concern over the announcement. She said: "Today’s announcement from Stellantis is deeply troubling for our town. I am committed to working with the UK Government, Stellantis, and Unite the Union in securing the best solution for Luton and our highly skilled workforce. Luton depends on these high-quality manufacturing jobs to drive local growth and support national prosperity."
Hopkins highlighted the long history of the Vauxhall plant in Luton, noting its significance to the town’s economy. “The Vauxhall plant is part of the fabric of Luton’s heritage and vital to our local economy. For over a century, generations of Lutonians have worked there, contributing to the production of vehicles like the Vivaro van. These efforts have created jobs and attracted investment,” she added.
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."
Responding to the announcement today that Stellantis is proposing to close its van plant in Luton, a Unite spokesperson said:
“The proposal that has been tabled today has been a complete slap in face for our members in Luton, where Vauxhall vehicles have been manufactured for 120 years. Whatever the positive benefits this plan may have for Ellesmere Port, that is not acceptable.
“We stand ready to support our members in doing whatever we can to ensure that historical vehicle manufacturing is maintained in Luton and we call on the government to do the same.”
Cllr Hazel Simmons MBE, Leader of Luton Council says: “today's news that Vauxhall plans to close its van making factory in Luton is a devastating blow for our town.
“First and foremost, our thoughts are with the employees and their families who have received this deeply distressing news.
“We are ready to support in any way we can and will be meeting with the plant’s management and Trade Unions to discuss practical help we can give at this time. When other firms have closed locally we have an excellent track record supporting employees to find alternative work utilising their transferrable skills and are fully committed to doing the same with our local Vauxhall community where a transfer to Ellesmere Port is not feasible for them.
“We are also seeking clarity from the government on what support they may also be able to provide for employees at this time.
"Vauxhall has been an integral part of Luton’s heritage, and this is a sad day for our town, but we are a strong and resilient town and always bounce back. We will do exactly the same following today’s news".