Vauxhall owner Stellantis confirms Luton factory closure with 1,100 jobs set to be lost – ‘Total disgrace’

Vauxhall owner Stellantis has confirmed its plan to close the Luton van factory, which will see around 1,100 jobs lost despite intense pressure from the Government, unions and local residents.

In November, Stellantis announced its intention to close its Luton factory and move manufacturing to its Ellesmere Port plant and make it the brand’s EV-only volume manufacturing base in the UK.

This was met with widespread condemnation at the time over claims Stellantis, which also owns Citroen, Fiat and Peugeot, had blamed the forced closure on the UK’s Zero Emission Vehicle (ZEV) mandate.

While there was optimism that the Government and other key stakeholders would be able to secure a future for the Luton plant and its workers, Stellantis has now confirmed that it will move forward with the closure.

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A spokesperson for Stellantis said: “Stellantis confirms its plan to invest £50million to strengthen the Ellesmere Port plant as its UK commercial vehicle hub, demonstrating both its commitment and long-term sustainability to UK production.

“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.

“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.”

Business and Trade Secretary Jonathan Reynolds said the Government had engaged with Stellantis “extensively” over the consultation period, but noted that the decision would be “deeply concerning” the the impacted workers.

It was also confirmed that the Government would work closely with Stellantis, trade unions and Luton council to ensure measures are introduced to support the local area.

The £50million investment from Stellantis for the Ellesmere Port plant will be designated to consolidate the manufacturing of light commercial vehicles to create an all-electric, sustainable vehicle hub.

The decision to close the plant comes less than a year after Stellantis announced it would begin electric vehicle production at its Luton site from 2025 to produce medium-size electric vans for Vauxhall, Citroen, Peugeot and Fiat Professional.

The Unite union, who have been engaged in talks with Stellantis and the Government since November, have slammed the decision to close the Luton factory.

Sharon Graham, general secretary of the Unite union, said: “Stellantis’ betrayal of its Luton workforce, who have delivered every target asked of them, is a total disgrace.

“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.”

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Luton Council said it was “extremely disappointed and angry” at the closure despite “numerous options” being put forward to salvage the plant and the 1,100 jobs. They added that it would lead to substantial economic losses, including job cuts, and reduced consumer spending.

The council will provide those who have lost their jobs with support and additional skills to help them find alternative employment.

Councillor Hazel Simmons MBE, Leader of Luton Council, described the move as “heartbreaking” and “devastating” for the community and the livelihoods of the workers.

She said: “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.”

GB News has contacted Stellantis for a further comment.