Luton Borough Council has voiced their anger at news that car maker Stellantis will go ahead with plans to close the town’s Vauxhall factory.

Stellantis previously announced in November that it was considering plans to close the site, which had been in operation for 120 years and was the work site for over 1,000 employees.

It is understood formal communication was made by the car marker to confirm they will go ahead with closure plans from April 2025.

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, deciding to create a single UK base at Ellesmere Port near Liverpool for production instead. The company previously blamed net zero rules for deciding to close the Luton base.

In a statement to the media, Stellantis said, “Production will cease in Luton in Q2 2025, with a period of transforming and transferring machinery and process knowledge to Ellesmere Port. Production of the group’s medium all-electric LCV range (eK0) in Ellesmere Port will commence in Q4 2026.

“These employees are our priority and we will continue to act responsibly towards those in Luton. Our focus will now be to work closely with the Trade Union to support employees who may be impacted. This will include financial support, relocation support for those who wish to transition to Ellesmere Port and onsite support activities, such as job fairs, CV writing, retraining support and wellness sessions”.

In a statement, Luton Borough Council voiced their anger with the decision.

They said, “Luton Council is extremely disappointed and angry at Stellantis’ decision to close Luton’s Vauxhall plant after numerous options put forward to keep the plant open were rejected.

As one of the largest employers in the area, Vauxhall is a key player in Luton’s economy, with significant contributions through direct and indirect employment as well as  supply chain businesses.

“The closure of the plant will result in substantial economic losses, including job cuts, and reduced consumer spending. That is why the council worked hard, alongside trade unions and Government departments to try and save the plant.

“It will now be supporting the workers by helping find alternative employment, and working with existing businesses in Luton and surrounding area to take on employees with relevant skills. They will also provide upskilling, reskilling and retraining programmes and bespoke job fairs through Luton Adult Learning.

“The council is currently in discussions with Stellantis to explore possibilities to buy the site so it can ensure its future development will be of economic benefit to the town.”

Cllr Hazel Simmons MBE, Leader of Luton Council added, “This is heartbreaking news and a devastating blow to Luton and the livelihood of the workers. Vauxhall has been an integral part of Luton’s heritage for decades. We did what we could to try and stop this closure going ahead and I feel angry that this decision will massively impact the lives of so many people. 

“This is news the workers and their families would have been dreading to hear and we want them to know we are behind them and will support them all we can.

“It’s not just them who are affected. This will impact the whole town. With job losses at the plant as well as the wider supply chain, it will have a huge impact on the local economy, but we will recover from this”.

Another body to voice their disappointment were the Unite trade union, who branded the decision “a total disgrace” in their own statement.

Unite’s general secretary Sharon Graham said, “Stellantis’ betrayal of its Luton workforce, who have delivered every target asked of them, is a total disgrace.

“Once again, UK workers have been exposed to a company willing to sacrifice our manufacturing base for fleeting gains – this has to change.

“We urgently need an industrial strategy that puts the national interest at the heart of decision making in manufacturing, as they do in other countries.”