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Vauxhall Owner Stellantis to Close Historic Luton Plant, Cutting 1,100 Jobs Over EV Mandate

Nov 26, 2024, 05:19 PM

Vauxhall's parent company Stellantis has announced plans to close its van-making factory in Luton, England, putting more than 1,100 jobs at risk. The closure, scheduled for April, ends over a century of vehicle production at the site, which dates back to 1905. Stellantis is consolidating UK manufacturing operations at Ellesmere Port. The company cited the UK government's stringent zero-emission vehicle (ZEV) sales mandate as a significant factor in its decision, noting that the required percentage of zero-emission van sales will rise to 70% by 2030. Stellantis had previously warned it might halt UK production unless the government eased its EV policies. The Unite union called the proposal a 'complete slap in the face' and vowed to fight for the workers' jobs. Business Secretary Jonathan Reynolds acknowledged that plans for boosting electric vehicle uptake are not working as intended and indicated the government may reduce financial penalties on carmakers who fail to meet their EV sales targets. The closure of the Luton plant represents a significant blow to the UK's automotive industry and the town of Luton.