Vauxhall parent Stellantis NV (NYSE:STLA, EPA:STLA) has unveiled plans to close its van-making factory in Luton, leaving doubt over 1,100 jobs at the manufacturer.
Production of the company’s vans will move to its Ellesmere Port site, which is set for a £50 million cash injection under the move.
“Hundreds” of jobs will also hopefully be transferred to the other Vauxhall site, with consultations said to be ongoing between the company and unions over the proposals.
Electric and diesel vans are built at the Luton factory, while plans had been in place for electric models to be produced there prior to the closure decision.
Manufacturers have criticised government-set targets requiring a proportion of annual sales to be made up of electric vehicles.
From 2024, 22% of sales have to be made up of electrics, with the figure set to increase annually to 100% by 2035.
Reports on Tuesday said the government was considering ways to water down the target though, including through allowing more flexibility for manufacturers, but also introducing incentives to bolster demand.
Stellantis’ move follows news last week that Ford would axe 800 roles in the UK under sweeping cuts across Europe in response to lacklustre demand for electrics.