Vauxhall’s Luton factory to close, parent company Stellantis announces – putting more than 1,100 jobs at risk | Money news

On November 27, 2024By Pranco

Vauxhall will close its 120-year-old factory in Luton in April, parent company Stellantis announced.

More than 1,100 jobs at the van plant are at risk, but Stellantis said it hopes to transfer “hundreds” of jobs Luton jobs for the group Opel location in Ellesmere Port, Cheshire.

The company is now in consultation with unions and employees on the proposals, which will also see it invest £50 million in the Ellesmere Port factory.

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The company said it would offer “relocation support” and “an attractive package” to employees looking to transfer to Ellesmere Port in north-west England from Luton, north of London.

The company’s director, Maria Grazia Davino, had warned closure was possible. In June, she told an industry event: “Stellantis production in Britain could end” as more needs to be done to boost consumer demand for electric vehicles.

But the losses and investment at Ellesmere Port are a “better outcome and could have happened”, business secretary Jonathan Reynolds told MPs on the Business Select Committee.

The government was first informed of Stellantis’ plan shortly after taking office in July and fought back against the closure “very vehemently,” he said.

A sector-wide phenomenon

It is the second British carmaker to announce job cuts in less than a week. Just six days ago Ford unveiled plans to cut 800 jobs in Britain as part of a 4,000 job cut across Europe.

Pressure has been put on British carmakers to meet the government’s electric car mandate, as talks over the 2030 deadline take place between the government and the industry.

Currently, financial penalties are imposed on manufacturers if zero-emission vehicles make up less than 22% of all sales. This will increase to 80% of all sales by 2030 and 100% by 2035.

Across Europe, the automotive sector is feeling the pressure of slowing sales and competition from China. On Friday, Bosch, the world’s largest automotive parts supplier, presented reported the loss of 5,500 jobsmainly in Germany.

Workers’ representative Unite said the proposal is “a complete slap in the face” to its members.

“Whatever the positive benefits of this plan for the Port of Ellesmere, it is not acceptable,” the report said.

A government spokesperson said: “We have a long-standing partnership with Stellantis and we will continue to work closely with them, as well as trade unions and local partners, on the next steps of their proposals.

“The Government is also supporting the wider industry with more than £300 million to drive the uptake of zero-emission vehicles and £2 billion to support the domestic manufacturing transition.”