Vauxhall's Ellesmere Port plant set for £50m investment as Luton site to close

Vauxhall has announced plans to invest £50m in its Ellesmere Port plant as it prepares to cease manufacturing at its Luton site. As a result of the Luton closure, operations would be transferred to Ellesmere Port's North Road factory, creating hundreds of jobs.

Cheshire Live understands that, subject to consultation, production in Luton would stop by June next year with work being moved to Ellesmere Port from 2026 onwards. The carmaker's parent company Stellantis has confirmed that it 'will offer relocation support to facilitate employees wishing to transfer to the Ellesmere Port site with an attractive package, where hundreds of permanent jobs will be created'.

The company has entered into a period of a consultation with the trade union representatives and its employees. The £50m will be used to create an all-electric, sustainable vehicle hub at its Ellesmere Port site.

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"The proposal, made within the context of the UK’s ZEV Mandate, will potentially contribute to greater production efficiency, including additional production of the medium-sized K0* battery electric LCVs, and support the company’s ambition to become the No. 1 LCV manufacturer globally," the carmaker said in a press statement released this afternoon.

"Ellesmere Port is proposed as the new all-electric UK LCV hub to take advantage of UK employees' expertise on the new line, the site’s footprint and proximity to the Green Automotive Hub located at the adjacent Queen Elizabeth II Eastham docks and the recently constructed 59,500m² Stellantis UK parts distribution centre.

"Dedicated comprehensive job support, including opportunities for retraining, for all employees affected will also be implemented in the very active Luton area, just one mile from the international airport. At the same time, Stellantis will work with local government and local employers to identify new employment opportunities within the Luton area for Stellantis employees who might be impacted by this proposal if it goes ahead.

"Stellantis intends to remain the UK market leader in electric LCVs, with over 32,000 vehicles already sold in the country since launch and will continue to be the only volume manufacturer of LCVs in the UK."

A Government spokesperson said: "While it’s encouraging to see Stellantis investing in the future of its Ellesmere Port plant, we know this will be a concerning time for the families of employees at Luton who may be affected. We have a longstanding partnership with Stellantis and we will continue to work closely with them, as well as trade unions and local partners on the next steps of their proposals.

"The government is also backing the wider industry with over £300 million to drive uptake of zero emission vehicles and £2 billion to support the transition of domestic manufacturing."

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