Vauxhall’s parent company, Stellantis, has announced plans to close its van manufacturing plant in Luton next April, putting more than 1,100 jobs at risk.
The decision comes amid mounting pressures from the UK government’s stringent electric vehicle (EV) sales targets, part of the zero-emission vehicle (ZEV) mandate.
Stellantis, which also owns Peugeot, Citroën, and Fiat, intends to consolidate its UK operations by focusing production at its Ellesmere Port facility in Cheshire. The plant has already received a £100 million investment to produce electric vehicles and currently manufactures smaller electric vans such as the Citroën e-Berlingo and the Vauxhall Combo Electric. An additional £50 million investment is planned to boost production capacity at Ellesmere Port.
The closure marks the end of over a century of manufacturing history in Luton, where Vauxhall first established operations in 1905. The Luton plant has been a significant part of the local economy, producing commercial vehicles since 1932 and contributing to the town’s industrial heritage.
Stellantis’s decision follows warnings earlier this year that both its UK plants were at risk due to government pressures to meet ambitious EV sales targets. The ZEV mandate requires car manufacturers to ensure that 22% of their sales are zero-emission vehicles by the end of this year—a target many firms are struggling to meet. Companies face fines of £15,000 for each petrol or diesel car sold beyond the target and £18,000 for each non-compliant van.
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