Stellantis proposes Luton plant closure amid ZEV mandate row

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Stellantis proposes Luton plant closure amid ZEV mandate row
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All of the factory's operations would be moved to Ellesmere Port as part of 'consolidation' plans

Vauxhall owner Stellantis has announced plans to close its historic commercial vehicle factory in Luton, just months after bosses threatened closures as part of a battle with the UK government over its zero-emission vehicle mandate. The announcement, which puts 1100 jobs at risk, is part of a move to “consolidate” Stellantis's UK manufacturing footprint to one site at Ellesmere Port, which last year began making EVs following a £100 million upgrade.

Under the mandate, car makers must achieve an EV sales mix of 22% in 2024, rising incrementally each year to 80% by 2030, or face heavy fines for every non-electric car sold over the threshold. Tavares’s words came a month after former Stellantis UK boss Maria Grazia Davino warned that the company could stop building vehicles in the UK if the government’s electrification initiatives created a “hostile” trading environment.

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