Big changes are on the horizon for Stellantis, the world’s fourth-largest carmaker, as the company announces plans to close its Luton factory in England. This plant, which has long been a hub for van production for Stellantis’ European brands, is now set to wind down operations.
But this isn’t just a story about shutting doors.
Stellantis is doubling down on its factory in Ellesmere Port, which is set to become the company’s central hub for light van production in the UK. And they’re committing an additional £50 million to expand and upgrade the facility.
As reported by Top Gear, Stellantis is promising a responsible transition for its Luton employees.
“While Ellesmere Port is being strengthened as a sustainable hub for light commercial vehicle production in the UK with the transfer of operations from Luton, the company remains committed to acting responsibly towards its employees in Luton,” the company said in a statement.
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For employees willing to relocate to Ellesmere Port, Stellantis is offering support packages and “attractive terms.” Plus, the expansion is set to create hundreds of permanent jobs at the upgraded facility.
The Luton plant’s future has been under scrutiny for a while.
Earlier this year, there were plans to start producing electric vans there by 2025. However, in October, Stellantis CEO Carlos Tavares hinted that a decision on the company’s two UK factories was imminent—leaving Luton hanging in the balance.
One big factor behind the closure is the UK government’s Zero Emission Vehicle (ZEV) mandate, which sets ambitious targets for electric vehicle production. Automakers are required to make 22% of their vehicles electric by 2024, with that figure skyrocketing to 80% by 2030.
These rules have sparked calls for flexibility, with some manufacturers even urging a complete rollback.
