The closure of the Luton plant
Stellantis announced the closure of the Luton plant, a decision that marks an important change in the company’s production strategy. This move was motivated by the need to concentrate production at the Ellesmere Port site, in Cheshire, where electric vehicle production is expected to increase. The closure is scheduled for spring 2025 and will jeopardize about 1,100 jobs currently dedicated to the production of gasoline and diesel vans
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Response to government policies
Stellantis’ decision comes in response to growing pressure from the British government to accelerate the transition to electric vehicles. The new Labor executive has in fact 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, focusing on greater
efficiency and sustainability.
Impact on workers and future opportunities
The closure of the Luton plant will have a significant impact on workers, but Stellantis has promised to offer support to those interested in moving to Ellesmere Port, where new jobs are expected. The company said that closing Luton could lead to greater production efficiency and a strengthening of its position in the electric vehicle market. In addition, Stellantis has planned to start production of the Vivaro electric van in Ellesmere Port, marking an important step towards a
more sustainable future.
The reactions of the market and companies
The news about the closure of the Luton plant has elicited mixed reactions in the market. While Asian stock exchanges show signs of growth, with Hong Kong in the lead thanks to technological stocks, European stock exchanges and Piazza Affari opened subdued. Investors are closely monitoring data on Chinese industrial profits and PMI results, which could further influence the market. Meanwhile, Volkswagen announced the sale of its operations in the Chinese region of Xinjiang, highlighting the challenges that automotive companies face in a changing economic environment
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