The parent company of Vauxhall has announced plans to close its van production factory in Luton – a move that could put 1,100 jobs at risk.
Stellantis intends to shift electric van manufacturing to its Ellesmere Port plant in Cheshire, backed by a £50 million investment.
The decision marks a significant setback for vehicle manufacturing in the UK.
The announcement comes amid criticism from industry leaders over the Zero Emission Vehicle (ZEV) mandate, which requires automakers to meet strict electric vehicle sales quotas.
By the end of the year, manufacturers must ensure 22 per cent of car sales and 10 per cent of van sales are zero-emission models.
The Society of Motor Manufacturers and Traders (SMMT) has warned that complying with the ZEV mandate could cost the industry billions this year and as much as £6 billion next year.
The automotive sector is now calling for urgent government support, citing concerns over the potential impact on business sustainability and jobs.
Stellantis stated that consolidating light commercial vehicle (LCV) production in Ellesmere Port is aimed at boosting efficiency and solidifying its position as a leading global LCV manufacturer.
However, industry representatives have emphasised the need for government intervention to mitigate what they describe as potentially devastating effects on the sector’s viability.
Mike Hawes, chief executive of the SMMT said: “We need an urgent review of the automotive market and the regulation intended to drive it.
“Not because we want to water down any commitments, but because delivery matters more than notional targets.
“The industry is hurting; profitability and viability are in jeopardy and jobs are on the line. When the world changes, so must we.”
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