Stellantis (STLAM.MI) is set to close its Vauxhall van factory in southern England, a move that jeopardizes over 1,000 jobs. The company, which also owns brands like Peugeot, Citroën, and Fiat, announced the plan to consolidate its UK production of light commercial vehicles at the Ellesmere Port site in northern England, where it is investing £50 million ($63 million) to create an all-electric vehicle hub.
The company stated that “hundreds of jobs” will be relocated from the Luton factory–located near London in the south – to Ellesmere Port, and it has begun consultations with employees and labor unions. The British government acknowledged the investment in Ellesmere Port as encouraging, but also voiced concern for the employees and families affected by the Luton closure.
The consolidation reflects a challenging trading environment, mirroring moves by other automakers like Volkswagen, Ford, Nissan, and GM, who are cutting jobs in response to softening demand for electric vehicles (EVs), higher costs, and rising competition from China. Furthermore, European carmakers face potential indirect impacts from former U.S. President Donald Trump’s pledge to impose tariffs on imports from Mexico.
In June, Stellantis urged the government to take greater action to stimulate demand for electric vehicles to help meet requirements mandating automakers to sell more EVs. They warned that a failure to do so could lead to a halt in British production. This announcement follows a profit warning issued by Stellantis in September, which forecast a cash burn of up to 10 billion euros in 2024.
