Vauxhall to close Luton plant, more than 1,100 jobs at risk amid pressure on EV mandate
Vauxhall’s parent company, Stellantis, has announced plans to close its van manufacturing facility in Luton next April, putting more than 1,100 jobs at risk.
The decision comes amid increasing pressure from the UK government’s strict electric vehicle (EV) sales regulations, which are part of the zero-emission vehicle (ZEV) mandate.
Stellantis, which also owns Peugeot, Citroën, and Fiat, aims to consolidate its UK operations by focusing production at its Ellesmere Port facility in Cheshire. The facility has already received a £100 million investment to produce electric cars and currently produces electric minivans such as the Citroen Berlingo and the Vauxhall Combo Electric. A further investment of £50 million is planned to increase production capacity at Ellesmere Port.
The closure marks the end of more than a century of manufacturing history in Luton, where Vauxhall began operations in 1905. Luton’s factory has been an important part of the local economy, producing commercial vehicles since 1932 and contributing to the town’s industrial heritage.
Stellantis’ decision follows warnings earlier this year that both UK plants were at risk due to government pressure to meet EV sales targets. The ZEV mandate requires automakers to ensure that 22% of vehicle sales are completed this year—a target many firms struggle to meet. Companies face fines of £15,000 for each petrol or diesel car sold above the target and £18,000 for each non-compliant van.
Labour’s transport secretary, Louise Haigh, has remained firm on the target, despite industry calls for flexibility. Stellantis had previously considered repurposing the Luton plant to exclusively produce electric vans, including an electric version of the Vauxhall Vivaro—the best-selling electric van in the UK. However, this plan appears to have been abandoned due to ongoing challenges.
Workers at the Luton factory have been informed of the closure, and the company is offering relocation packages to those willing to move to Ellesmere Port and support to those looking for a new job. Trade union Unite described the proposal as “a complete slap in the face to our members in Luton,” pledging support for workers and urging the government to intervene.
Rachel Hopkins, Labor MP for Luton South, expressed deep concern at the announcement, highlighting the plant’s importance to the local economy and its contribution to Luton’s heritage.
Business Secretary Mr. Jonathan Reynolds admitted that the situation is difficult, and said that switching to electric vehicles should not result in job losses. A government spokesman emphasized continued support for the car industry, revealing more than £300 million has been invested to promote zero-emission cars and £2 billion to help domestic manufacturing reforms.
The Society of Motor Manufacturers and Traders (SMMT) called the announcement a “major concern” for UK car manufacturing and called on the government to review regulations and introduce measures to improve competition.
Stellantis’ move reflects broader concerns within the auto industry about the ZEV mandate and the push for electrification. Manufacturers such as Ford and Nissan have also expressed concern, with Ford recently announcing 800 UK job cuts and Nissan warning of irreparable damage to the industry if the authority is not exposed.
Automakers say tough policies, combined with a lack of consumer benefits and infrastructure challenges, make it difficult to meet government expectations. The SMMT highlighted that as of October, battery electric vehicles made up just 18.1% of new car sales in the UK, falling short of the mandate’s requirements.
Competition from abroad, particularly from Chinese manufacturers offering budget EVs, is adding pressure to UK firms. Industry leaders are calling for greater flexibility and support to achieve change without jeopardizing jobs and the future of UK car manufacturing.
