Stellantis has announced the closure of one of its historic factories, the Luton plant, which has been producing various Vauxhall models for 120 years. The decision will impact over 1,000 employees, who will face a difficult choice: relocate to Ellesmere Port, approximately 225 kilometers away, or lose their jobs. The automotive group has announced that production at the Luton facility will cease in April 2025, to focus entirely on the Ellesmere Port factory, located in Cheshire, northwest England. This would be the UK’s first factory dedicated exclusively to electric vehicle production.
Unions respond to Stellantis’ decision to close the Luton plant
As has been known for some time, Stellantis has been facing significant challenges due to British regulations, which require automakers to sell an increasing percentage of zero-emission electric vehicles (ZEVs), in view of the total ban on combustion vehicles set for 2035.
In general, while the transition to electric is progressing, demand for zero-emission vehicles remains uncertain. Each vehicle exceeding the imposed ZEV thresholds will incur a £15,000 penalty, although it’s possible to purchase credits from other companies to cover the gap.
Stellantis, which also owns the Peugeot, Citroen, and Fiat brands, faces ambitious targets. Following the closure, the group stated it will provide “relocation support” to workers who decide to move to Ellesmere Port, also offering an attractive package.
Negotiations with unions are still ongoing to define the details. Jonathan Reynolds, UK Business Minister, described the relocation proposal as a better solution than complete closure. However, the Unite union, which also represents Stellantis workers in Luton, has strongly criticized the decision, calling it a “slap in the face” for employees forced to relocate over 200 km away, with all the difficulties that entails. “Regardless of the benefits for Ellesmere Port, this proposal is not acceptable,” the union stated, announcing it is ready to do everything possible to maintain production at the Luton facility and has urged the government to do the same.