Stellantis Shifts Focus to Electric Vehicle Production, Closes Luton Van Plant

Stellantis Moves to All-Electric Manufacturing at Ellesmere Port
Stellantis, the French-Italian automotive conglomerate, is restructuring its UK operations with a strategic shift towards electric vehicle (EV) production. As part of this transition, the company has announced the closure of its Luton plant, which currently manufactures Vauxhall petrol and diesel vans. This move will result in the potential loss of 1,100 jobs. The Luton facility was slated to start producing electric light commercial vehicles (LCVs) next year for several Stellantis brands, including Vauxhall, Citroën, Peugeot, and Fiat. However, Stellantis has decided to consolidate its operations at its Ellesmere Port plant, which is being transformed into the company’s first dedicated EV manufacturing hub.

£50 Million Investment in Ellesmere Port to Support EV Production
The Ellesmere Port site in Cheshire, which has already received a £100 million investment in 2021 to shift its operations towards EV production, will see an additional £50 million investment. This move is part of Stellantis’ strategy to develop an all-electric, sustainable vehicle hub. With this investment, the Ellesmere Port facility will handle the production of battery-electric LCVs for Stellantis’ brands, shifting away from traditional internal combustion engine (ICE) vehicle manufacturing. This decision aligns with the company’s broader goal of reducing its environmental impact and accelerating its transition to a net-zero emissions future. The shift is expected to support Stellantis’ commitment to sustainability and the growing demand for electric commercial vehicles across Europe.

Union Opposition and Job Support Initiatives
The announcement of the Luton plant closure has drawn significant backlash from the Unite union, which represents the workers at the facility. The union has criticized Stellantis for the potential loss of jobs in Luton, where Vauxhall vehicles have been manufactured for 120 years, and has labeled the closure a “slap in the face” to the workforce. In response, Stellantis has begun talks with unions and employees about relocating hundreds of jobs to Ellesmere Port and providing dedicated support for workers affected by the closure. The company has emphasized its commitment to job support and relocation to mitigate the impact on Luton employees. However, the union has called on the UK government to step in and ensure that manufacturing continues in Luton, while also securing better employment opportunities for affected workers.

EV Sales Slowdown Raises Concerns for Stellantis and European Car Manufacturers
The decision to focus on electric vehicle production comes at a challenging time for Stellantis, as well as other European car manufacturers. The electric vehicle market has faced slow adoption, with EV sales lagging behind expectations. Despite Stellantis’ significant investments in electric vehicle production, including the transformation of Ellesmere Port into a dedicated EV plant, the company is still grappling with the transition to a more sustainable automotive future. The slow growth in EV sales has affected Stellantis’ overall performance, making it critical for the company to adapt to changing market conditions and increasing demand for sustainable mobility solutions.