Vauxhall closes huge UK factory after 120 years with 1,100 jobs at risk as workers say it’s a ‘sad day’
VAUXHALL has closed a huge UK factory after 120 years with 1,100 jobs at risk.
The move was slammed by furious MPs who say the closure is set to “massively impact the whole town” as devastated workers dubbed it a “sad day”.
The plans were first announced in November 2024, putting 1,100 jobs at risk, and the company blamed the UK’s switch to electric vehicles and the ZEV Mandate.
After the closure, in Luton, machinery will be transported to Ellesmere Port in Cheshire, where electric vans are already being produced.
Vauxhall owner Stellantis, the second-biggest maker of cars in Europe, has said it will invest £50million in Ellesmere.
Staff member Steve Brown told the BBC it was a “sad, sad day”, but he said the atmosphere was “excellent”.
He added: “I’ve done 34 years, but life goes on, we’ll go on. The people and the company – we’ve had some good times and it’s been great.”
Fellow employee Josh Scrutton hailed the company and said: “It’s the best job I’ve had. Everyone was waiting for last van to come out, everyone stayed.”
Meanwhile, Muhammad Basharat, who has worked at the factory for 24 years, said it was “very sad” to say goodbye to “a lot of history and memories here”.
The decision comes months after the multi-national firm, which also owns the likes of Citroen, Fiat, Jeep, Peugeot and Maserati, warned it may halt production in the UK.
The ZEV Mandate, which are the strict new rules that aim to limit the sales of new petrol and diesel vehicles in the UK ahead of a 2035 ban, have been critised by the car giant for its proposed penalties on car-manufacturing.
Luton Council previously hit out against the decision, claiming they offered “numerous options to save the plant but they were rejected” by Stellantis.
Hazel Simmons, Labour leader of Luton Council, said: “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.”
Business and trade secretary Jonathan Reynolds added: “This news will be deeply concerning for the employees at Luton who will be affected and their families.
“We have a longstanding partnership with Stellantis and have engaged with them extensively throughout this process, including discussions over the past week and today.
“We will continue to work closely with them, the trade unions and Luton council to put in place measures to support the local community.”
In June last year, the company’s former UK boss, Maria Grazia Davino, said: “Stellantis UK does not stop, but Stellantis production in the UK could stop”.
Then, in an update in October, boss Carlos Tavares further urged ministers to relax the rules around EV production.
Tavares called on the government to “help to stimulate the demand” for EVs and cemented that the current threshold for green sales is approximately double the “natural” levels of demand.
At the Paris Motor Show, boss Carlos Tavares further urged ministers to relax the rules around EV production in a warning that potentially puts 2,500 workers at risk.
Speaking to Bloomberg TV he said: “We are now reaching a point where we have to make a decision, and that will happen in the next few weeks.”
This comes at a time when demand for electric cars across Europe is experiencing a downturn, with consumers seemingly hesitant to switch from combustion motors to EVs due to their high prices and concerns around charging infrastructure.
Meanwhile Donald Trump last month revealed his plan to introduce a 25 per cent tariff on cars and other good from the EU.
European autoshares fell after the move and EU boss Ursula von der Leyen described a “deep and disruptive transition ahead”.
International car sales faced a steep decline last year, with French and German manufacturers affected the worse.
According to an Allianz Trade report, European manufacturers had been edged out by US and Chinese rivals including Tesla.
Why are so many car dealerships closing down?
By Summer Raemason
According to Business Rescue Expert there are multiple reasons why car dealerships are folding across the UK.
The first major factor is rising online car sales which are beating in-person sales at dealerships.
With an extensive range of comparison and second-hand sites to chose from, may car buyers don’t even step foot into a dealership anymore.
Secondly, the actual cost to physically run the sites has soared.
Rent, wages and energy bills have all been increasing for roughly the past five years, putting many out of pocket.
Car manufacturing across the globe was also hit by a semiconductor chip shortage in 2022 which made it difficult to produce new motors.
The high demand with limited supply created a backlog, which although has eased, is still having an impact on the industry.
A third reason for recent closures is the shift to electric cars.
They are becoming more popular, given the Government initiative to be Net Zero in 2050.
The industry is also affected when companies merge or are bought by rivals.
This may lead to some independent names falling victim to the ongoing spate of closures.