Stellantis, the parent company of various automotive brands such as Citroen, Peugeot, Vauxhall and Fiat, has announced plans to cease van production at its site in Luton, putting over 1,100 jobs in jeopardy in line with the ongoing push for EV transition in the UK. The company plans to merge its electric vehicle sites into a single location at Ellesmere Port, with the rules imposed to accelerate the country’s move towards EVs being cited as a driving force behind the decision. The policy mandates that manufacturers sell a minimum of 22% EVs of their car sales and 10% of van sales this year. Non-compliance results in a £15,000 penalty. Industry insiders have been calling upon the UK government to make EVs a more enticing prospect for consumers.
Stellantis previously forecasted that the Bedfordshire Luton site would begin producing medium-sized electric vans in 2025; however, its closure will mean that all electric vehicle development and manufacturing will occur at the Ellesmere Port location, which recently received a £50m cash injection. The car company has also been investing time and money into hybrid technology, an area which it says is more financially viable at present. This shutdown follows several other factories closing across the country amid concerns over sustainability and profitability.
Stellantis’ CEO, Carlos Tavares, commented on the decision, acknowledging the impact on workers and emphasising the need for further policy support to increase electric vehicle demand. Tavares cited challenges within the industry towards fulfilling EV sales targets, explaining, “It’s very important that the policymaker gives an incentive to the customer side to buy electric vehicles, especially in this phase of transition”. Luton workers have ultimately been left without job security as the carmaker navigates the UK’s EV transition, with the industry alike undergoing an undeniable transformation in the years ahead.
Though the UK government has pledged over £300m in support to increase EV purchases, some groups such as Nissan, who manufacture EVs at their Sunderland site, have outlined concerns about the mandated EV sales percentage rules. Nissan has taken the stance that these rules present a threat to job stability and undermine investment opportunities. The news has set a worrying precedent for the UK automotive manufacturing sector and the future of many in it, with business leaders calling for increased policy incentives for EV adoption
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