Vauxhall-owner Stellantis is planning to close its commercial vehicle plant in Luton putting 1,100 jobs at risk, although some roles will be transferred to Ellesmere Port.
Stellantis has announced the start of a consultation with employees and trade unions on a proposal to consolidate its UK manufacturing of light commercial vehicles (LCVs) to create an all-electric, sustainable vehicle hub at its Ellesmere Port site in Cheshire through a £50 million investment.
If implemented, the company, which also makes vans for Citroën, Peugeot and Fiat, said there will be a comprehensive support plan for affected employees in Luton.
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“Hundreds of jobs” would be relocated to Ellesmere Port while “dedicated job support” would be available in Luton, where new third-party activities could be considered.
Stellantis said the proposal, made within the context of the UK’s zero-emission vehicles (ZEV) mandate, will potentially contribute to greater production efficiency, including “additional production of the medium-sized K0 battery electric LCVs” supporting its ambition to become the leading LCV manufacturer worldwide.
The Luton plant currently builds Vauxhall petrol and diesel vans and was to start making Vauxhall, Citroën, Peugeot and Fiat electric vans next year.
The electric versions would move to Ellesmere Port under the plans, while production of non-electric vans would move to France.
Last week, the Unite union demanded Stellantis chief executive Carlos Tavares commits to the future of both Luton and Ellesmere Port.
General secretary Sharon Graham said at the time: “Carlos Tavares needs to avoid indulging in counterproductive threats and game playing that will only damage Stellantis. If he threatens either plant then he will be met with the collective strength of Unite’s members who will have my full, unequivocal backing and the whole weight of the union behind them.
“Unite is already having constructive discussions with government and industry to reform the ZEV mandate to protect jobs. Much more must be done, but the transition to electrification will not be achieved by threatening workers.”
Unite described Tavares’ management as “ultra-aggressive” and said this has led to strikes in Italy and ballots for industrial action in the US.
In 2021, Stellantis invested £100 million in Ellesmere Port to transform the facility to electric LCV production.
In a statement, Stellantis said it remains committed to acting responsibly toward its employees in Luton and, if the proposal is approved, it will offer relocation support to facilitate employees wishing to transfer to Ellesmere Port with an attractive package, where “hundreds of permanent jobs” will be created.
Dedicated comprehensive job support will be offered, including opportunities for retraining, for all employees affected. At the same time, Stellantis will work with local government and local employers to identify new employment opportunities in the Luton area.
TUC general secretary Paul Nowak said ministers must act to support the manufacture of electric vehicles: “It is vital that urgent action is taken to keep this plant open and to save workers’ jobs. This must come alongside wider support to future-proof our motor sector, including investment in battery and component manufacturing for electric vehicles. It is now time for the company to get around the table with ministers and unions to agree a plan to maintain manufacturing in Luton.”
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