Stellantis, the owner of Vauxhall, has confirmed the closure of its Luton manufacturing plant where the Vivaro van is produced. The decision has sparked anger from local leaders, unions, and government officials.
The closure, set to take place in April 2025, will result in the loss of around 1,100 jobs and marks the end of more than a century of vehicle production at the site.
Stellantis shifts focus to Ellesmere Port
Stellantis first announced its intention to close the factory in November 2024, blaming the UK government’s zero-emission vehicle (ZEV) mandate for making continued production at Luton unviable. Instead, the company is investing £50 million to consolidate its UK commercial vehicle production at Ellesmere Port, which will become its primary site for electric van production.
A Stellantis spokesperson said: “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.”
The company has stated that workers affected by the Luton closure will receive financial support, assistance with relocation to the Stellantis facility at Ellesmere Port, and access to career transition resources, including job fairs, retraining support, and wellness sessions.
Political and union backlash
Local politicians have condemned the decision. Luton Borough Council expressed disappointment, stating that numerous proposals to keep the factory open 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 now exploring options to purchase the site for alternative use.
Business and Trade Secretary Jonathan Reynolds acknowledged the concerns of workers and their families, stating: “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.”
Unite the Union has been particularly scathing in its response. General Secretary Sharon Graham 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.”
Uncertain future for the Luton site
While production will cease at Luton, the factory’s fate remains unclear. Reports suggest that the site has already been put up for sale, with several interested parties considering redevelopment options. Due to its proximity to Luton Airport and London, potential uses could include hotel accommodation or logistics facilities rather than automotive manufacturing.
The government has also been in discussions with industry leaders about potential changes to the ZEV mandate, with ministers reportedly acknowledging the need for urgency in responding to concerns raised by manufacturers. However, with Stellantis now committed to shifting its operations, any changes to policy may come too late to save the Luton plant.
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