The automotive manufacturer Stellantis has announced it intends to close down the Vauxhall factory in Luton.

The decision intends to shut down a manufacturing facility in the Bedfordshire town that has been open for 120 years and puts over 1,100 jobs at risk.

Stellantis says it will transfer some staff to its site in Ellesmere Port near Liverpool if the proposals go ahead.

The French-Italian car maker, which also owns Citroen, Peugeot and Fiat, currently builds Vauxhall-branded petrol and diesel vans and the company had originally planned to build electric vehicles at the plant from 2025, but has now u-turned, claiming it wishes to create a single UK base at Ellesmere Port for production instead.

In a statement, Stellantis said, “Whilst strengthening Ellesmere Port as its sustainable light-commercial vehicle hub in the UK with the transfer of Luton operations, Stellantis remains committed to acting responsibly toward its employees in Luton and, if the company proposal is approved, will offer relocation support to facilitate employees wishing to transfer to the Ellesmere Port site with an attractive package, where hundreds of permanent jobs will be created.

“Dedicated comprehensive job support, including opportunities for retraining for all employees affected, will also be implemented in the very active Luton area, just one mile from the international airport. At the same time, Stellantis will work with local government and local employers to identify new employment opportunities within the Luton area for Stellantis employees who might be impacted by this proposal if it goes ahead.”

Stellantis has been reportedly motivated to make the decision as part of its opposition to UK government targets on electric vehicles. Rules changed in 2022 are intended to phase out production of petrol and diesel powered vehicles, with rules mandating that electric cars must make 28% of new vehicle sales in the UK next year and 100% by 2035.

Among the critics of the decision by Stellantis has been the trade union Unite.

In a statement, they said, “The proposal that has been tabled today has been a complete slap in face for our members in Luton, where Vauxhall vehicles have been manufactured for 120 years. Whatever the positive benefits this plan may have for Ellesmere Port, that is not acceptable.

“We stand ready to support our members in doing whatever we can to ensure that historical vehicle manufacturing is maintained in Luton and we call on the government to do the same.”

Luton Borough Council also voiced their disappointment.

Cllr Hazel Simmons MBE, Leader of Luton Council, said, “Today’s news that Vauxhall plans to close its van making factory in Luton is a devastating blow for our town.

“First and foremost, our thoughts are with the employees and their families who have received this deeply distressing news.

“We are ready to support in any way we can and will be meeting with the plant’s management and Trade Unions to discuss practical help we can give at this time. When other firms have closed locally we have an excellent track record supporting employees to find alternative work utilising their transferrable skills and are fully committed to doing the same with our local Vauxhall community where a transfer to Ellesmere Port is not feasible for them.

“We are also seeking clarity from the government on what support they may also be able to provide for employees at this time.

Vauxhall has been an integral part of Luton’s heritage, and this is a sad day for our town, but we are a strong and resilient town and always bounce back. We will do exactly the same following today’s news.