Vauxhall owner Stellantis has sparked anger from unions, local leaders and government officials by announcing the decision to close its Luton manufacturing plant.
The plant, which currently produces the Vauxhall Vivaro van, is set to close in April, with the loss of approximately 1,100 jobs. The closure will mark the end of more than a century of automotive production at the site.
Stellantis first announced the firm’s intention to close the Luton plant in November 2024. The UK government’s zero-emission vehicle (ZEV) mandate was cited as the cause, with Stellanits stating that continued production there would be unviable without a change to the programme.
The manufacturing group will now consolidate its commercial vehicle production in the UK at Ellesmere Port, Cheshire, which will become the primary site for Stellantis’s electric van production following a £50 million investment.
“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,” commented a Stellantis spokesperson.
Affected workers will receive financial support, assistance with relocation to Ellesmere Port, says Stellantis, as well as access to career transition resources such as job fairs, retraining support, and wellness sessions.
Political backlash
The decision has been condemned by local politicians, with Luton Borough Council expressing disappointment that numerous proposals to save the factory were rejected. Council Leader Cllr Hazel Simmons MBE called the closure “heartbreaking news and a devastating blow to Luton and the livelihood of the workers.” The council is currently exploring options to purchase the site for alternative use.
Business and Trade Secretary Jonathan Reynolds added: “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.”
General Secretary of Unite, Sharon Graham, was more scathing: “Stellantis’ betrayal of its Luton workforce, who have delivered every target asked of them, is a total disgrace," said Graham. “Once again, UK workers have been exposed to a company willing to sacrifice our manufacturing base for fleeting gains — this has to change. We urgently need an industrial strategy that puts the national interest at the heart of decision-making in manufacturing, as they do in other countries.”
While automotive production at the Luton plant will cease in a few months, the future of the factory site remains uncertain. It has been reported that it has already been put up for sale, with several parties expressing interest — including Luton council — and considering the options for its redevelopment. The site’s location, close to both Luton airport and London, could be an ideal spot for hotel accommodation or logistics facilities, taking it in a new direction.
Recent discussions between the government and industry leaders about potential changes to the ZEV mandate will likely come too late for the Luton plant. Ministers have acknowledged the need for urgent responses to manufacturers’ concerns, but with Stellanits having committed to moving its operations to Ellesmere Port, it'll be too late to save Luton.
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