In recent months, more than one automaker has faced its fair share of struggles across Europe and the UK, and that includes Ford and its cross-town rival, Stellantis. Both automakers previously invested heavily in electrification, a move that was seen as necessary some time ago as both of those places plan to phase out the sale of new ICE vehicles in the coming years. However, with consumer demand for EVs lagging far behind expected levels, automakers are now facing some tough decisions, and as such, Stellantis has decided to close one of its plants in the UK.
That plant is located in Luton, and just this past February, Stellantis announced that it would be building the company’s medium electric vans there starting in the first half of 2025 – a list that includes the Vauxhall Vivaro Electric, Opel Vivaro Electric, Peugeot E-Expert, Citroën ë-Dispatch, and Fiat Professional E-Scudo. Before Stellantis acquired the Luton plant, it had been in operation since 1905, as Vauxhall built vehicles there for more than a century. Vauxhall became a subsidiary of Stellantis in January 2021, having previously been owned by General Motors since 1925.
However, Stellantis has now announced that it will be closing the Luton plant and consolidating its operations – and workers – with the company’s Ellesmere Port site in Cheshire amid weak demand for EVs. The 100 or so workers currently stationed at the Luton facility that wish to transfer to Ellesmere will be offered what Stellantis calls “an attractive package,” and the company will work with government officials to help find jobs for those that won’t be moving to the other site.
Stellantis certainly isn’t alone in its struggles to sell EVs in the UK – which is aiming to phase out ICE vehicles by 2035 – as Ford has been asking the government in that country to introduce robust incentives for all-electric vehicles to boost demand. Ford also plans to cut 4,000 jobs across Europe – with most coming from Germany and the UK via voluntary retirements.
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