Vauxhall owner Stellantis plans to close the commercial vehicle plant at Luton, putting 1100 jobs in danger. However, some of these roles will be moved to Ellesmere Port.
Stellantis announced that it would begin a consultation process with its employees and unions regarding a proposal for consolidating its UK manufacturing of Light Commercial Vehicles (LCVs). The company plans to invest PS50 million to create a sustainable, all-electric vehicle hub on its Ellesmere Port facility in Cheshire.
The company, which makes vans and other vehicles for Citroen Peugeot Fiat also, has said that if implemented there will be an extensive support plan for the affected employees at Luton.
Ellesmere Port would receive “dedicated support for jobs”, while Luton would have “new third-party activities” considered.
Stellantis stated that the proposal made in the context of UK’s Zero-Emission Vehicles (ZEVs) mandate will potentially contribute to greater efficiency of production, including “additional manufacturing of the medium-sized battery-electric LCVs”, supporting its ambition to be the leading LCV manufacture worldwide.
The Luton factory currently produces Vauxhall diesel and petrol vans, and will start producing electric vans for Vauxhall Citroen Peugeot Fiat next year.
According to the plan, production of non-electric vans will be moved to France and the electric vans to Ellesmere Port.
The Unite union asked Stellantis CEO Carlos Tavares last week to commit to the futures of Luton and Ellesmere Port.
Sharon Graham, the general secretary at that time, said: “Carlos Tavares should avoid engaging in counterproductive threats or game-playing which will only harm Stellantis.” Unite members will respond with force if he threatens to shut down either plant. I will give him my unwavering support and the full weight of the union.
“Unite has already begun constructive discussions with the government and industry about reforming the ZEV mandate in order to protect jobs. There is much more to be done but threatening workers will not achieve the electrification transition.
Unite said that Tavares’ management was “ultra-aggressive”, and this led to strikes and industrial action ballots in Italy.
Stellantis will invest PS100 million by 2021 in Ellesmere Port for the conversion of the facility into electric LCV production.
Stellantis, in a statement said that it is committed to being responsible to its employees at Luton. If the proposal passes, Stellantis will provide relocation assistance to employees who wish to transfer to Ellesmere Port, with a package of attractive benefits, where “hundreds” of permanent jobs will be created.
All affected employees will receive comprehensive and dedicated job support, including retraining opportunities. Stellantis, in conjunction with the local government and employers will identify new job opportunities for the Luton region.
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