The closure of the Luton plant
Stellantis announced the closure of the Luton plant, a decision that marks a significant change in the company’s production strategy. This move is part of a larger plan to concentrate production at the Ellesmere Port site in Cheshire. The closure is scheduled for spring 2025 and will jeopardize about 1,100 jobs, currently employed in the production of gasoline and diesel vans
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Response to government policies
Stellantis’ decision is partly a response to recent British government policies, which have accelerated the transition to electric vehicles. The new Labor executive announced its intention to bring forward the ban on the sale of internal combustion vehicles to 2030, compared to the previous deadline of 2035. This regulatory change has prompted Stellantis to review its production strategies, shifting attention to electricity
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The future of electric vehicle manufacturing
Despite the closure of Luton, Stellantis plans to start production of the Vivaro electric van in Luton starting next year. However, the production of traditional vans will be transferred to France. The company said that this restructuring could lead to greater production efficiency and announced the creation of hundreds of jobs in Ellesmere Port, offering support to workers willing to relocate. This approach aims to ensure a smooth transition for employees involved in closing the plant.