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Vauxhall owner Stellantis plans to close its van factory in Luton, putting around 1,100 jobs at risk as the company sets up an all-electric manufacturing center at its other UK plant in Ellesmere Port.
The company said on Tuesday it aims to move “hundreds of jobs” from its Luton site, which currently makes vans for the Vauxhall, Peugeot, Citroen and Opel brands, to Ellesmere Port.
This announcement is a blow to UKIndia’s automobile industry, which has seen Honda, Ford and JLR factories halt production in the past decade.
Nissan, which operates the UK’s largest car plant in Sunderland, has already warned that jobs could be at risk unless the government relaxes electric car rules.
Stellantis said it plans to spend £50 million upgrading its Ellesmere Port plant as part of the merger. The group employs around 840 people in Cheshire.
A Government spokesman said: “While it is encouraging to see Stellantis investing in the future of the Ellesmere Port plant, we know this will be a worrying time for the families of employees at Luton who may be affected.
“We have a long-standing partnership with Stellantis and will continue to work closely with them, as well as trade unions and local partners on the next steps for their proposals.”
This is a developing story
