The world's fourth largest car group Stellantis is threatening to close a factory in England. Vans are mainly built here for the group's European brands.
Stellantis, the world's fourth largest car group, has announced plans to close its factory in Luton, England.
The closure may take place as part of a strategy to strengthen production at the factory in Ellesmere Port, which is intended to be the company's central production site for light vans in England.
According to Stellantis, this plan involves an additional £50m investment in Ellesmere Port.
That's what Top Gear writes.
– While Ellesmere Port is being strengthened as a sustainable hub for the production of light commercial corvettes in the UK with the transfer of the activities from Luton, the company remains committed to acting responsibly towards its employees in Luton, reads a statement from Stellantis.
It was also highlighted that the employees who wish to move to Ellesmere Port will receive support for relocation and "attractive terms". At the same time, several hundred permanent positions will be created at the expanded factory.
For those employees who do not wish to relocate, Stellantis will offer retraining opportunities and work with local employers and authorities to help them find new jobs in the Luton area.
The future of the Luton plant has been the subject of uncertainty, although earlier this year Stellantis announced that production of electric vans would begin there in 2025.
The uncertainty was heightened when Stellantis' director, Carlos Tavares, stated in October that a decision on the two British factories was just around the corner.
The background for the closure considerations is falling demand and the British authorities' requirements for the production of electric cars – known as the ZEV mandate.
This mandate requires automakers to make 22 percent of their production electric by 2024, a share that rises to 80 percent by 2030. The requirements have prompted calls for a relaxation of the rules from several stakeholders. Another car manufacturer has demanded that the requirement be removed. Read more about it here .
The investment in Ellesmere Port follows an earlier investment of £100 million in 2021, which made the factory Stellantis' first facility dedicated to the production of electric vehicles.
Stellantis has stated that the proposed move will contribute to greater production efficiency and support the ambition to become the world's leading manufacturer of light commercial vehicles.
