Britain's longerst operating commercial vehicle factory looks set to be closed as car giant Stellantis looks to create an electric vehicle production hub at Ellesmere Port.
Stellantis has announced the start of a consultation with its employees and Trade Unions over plans to consolidate its UK manufacturing of light commercial vehicles into a an all-electric hub at its Ellesmere Port site in Cheshire.
While the proposal include a £50m injection into the recently created small electric van manufacturing site, it will come at the cost of more than 1100 jobs in Luton.
The Luton factory is the home of Vauxhall and has been a dedicated commercial vehicle site for decades, producing more than 1,000,000 Vauxhall Vivaros, before recently being transferred electric production for the UK models of the other Stellantis medium vans, including an announcement as recently as February that the plant would become the home to the medium electric van range with the Citroen E-Dispatch, Peugeot E-Expert, Fiat E-Scudo and Vauxhall Vivaro Electric.
The plans have been brought about due to pressure from the UK’s ZEV Mandate.
Stellantis hopes to improve its own production efficiency by moving the manufacturing of the medium-sized K0 battery electric LCVs to a UK LCV hub at the transformed Ellesmere Port - formerly home to the Astra.
The company says it wishes to take advantage of "UK employees' expertise on the new line" as well as the site’s "footprint and proximity to the Green Automotive Hub located at the adjacent Queen Elizabeth II Eastham docks".
There's also a recently constructed 59,500m² Stellantis UK parts distribution centre.
The Zero Emission Vehicle Mandate requires van manufacturers to sell a minimum of 10% electric or other zero emission vehicles by the end of the year. Those targets will gradually increase.
Ellesmere Port underwent a £100m upgrade in 2021 to enable it to become the home of the electrified small vans in the enormous Stellantis portfolio. Citroen E-Berlingo, Peugeot E-Partner, Fiat E-Doblo and Vauxhall Combo Electric models are all made there as well as the Toyota Proace City Electric.
A new body shop, upgraded general assembly, and new on-site battery pack assembly areas were all created in the upgrade, with additional plans to see the plant become 100% self-sufficient for electricity by the end of this decade.
If the proposal is approved, Stellantis will offer relocation support to its Luton employees wishing to transfer to the Ellesmere Port site.
It also says that hundreds of permanent jobs will be created in Ellesmere Port.
Stellantis has said it will work with local government and local employers to identify new employment opportunities within the Luton area for staff affected by the change.
