Photo: Vauxhall
Car-making giant Stellantis has announced plans to close its Luton van factory after UK electric vehicle sales rules are held firm by the UK government.
Around 1,100 jobs have been put at risk due to the closure but the manufacturing giant has promised to relocate the workers to the company’s Ellesmere Port manufacturing site, according to reports.
The Vauxhall and Peugeot owner said Britain’s “challenging” UK Zero Emission Vehicle (ZEV) Mandate and firm 2030 ban on petrol vehicles played a “significant part” in the integration of electric van-making at its new plant.
The giant announced the start of a consultation with its employees and Trade Union partners on a proposal to consolidate its UK manufacturing of light commercial vehicles (LCV) to create an all-electric vehicle hub at its Ellesmere Port site in Cheshire through a £50 million investment.
The Society of Motor Manufacturers and Traders (SMMT) said slowing demands for electric vehicles (EV) and the requirement to hit EV sales targets would cost carmakers £6bn in 2024 alone, according to the BBC.
However, ministers remain determined to persist with the goal of phasing out of new petrol and diesel car sales by 2030. The target requires 80% of new cars and 70% of new vans sold in Great Britain to be emission-free by 2030, growing to 100% by 2035.
If manufacturers fail to reach these targets they will be subject to fines – £15,000 is required per polluting vehicle sold above the limits.
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