Vauxhall To Close Luton Factory In Shift To EV
The Vauxhall factory in Luton has had a presence in the local community for over 120 years, employing thousands of local people. Since 1905, the factory has been manufacturing vans but recent government EV requirements have lead owners, Stellantis, to announce that they will be shutting the factory. There are currently around 1,100 employed working at the factory that now all face the risk of losing their jobs completely during difficult financial times.
Current government rules state that manufacturers' EV sales must make up 22% of all of their car sales and 10% of their vans sales in 2024. Not only that, but manufacturers can incur fines for vehicles produced that push their sales outside of these required figures. And they are not cheap. Fines are approximately £15,000 per vehicle, although they can purchase "credits" from other manufacturers who are on target. These stringent rules and regulations have attributed to the decision to close the Luton factory, according to Stellantis.
There has been much demand from current and previous governments to push electric vehicles as they strive to lower carbon emissions. Last week, the motor industry, that is already experiencing drops in sales, had called on the government to protect the automotive industry more as it transitions to EVs. The Society of Motor Manufacturers and Traders (SMMT) have stressed that there has been a weak demand for EVs in comparison to what was anticipated when the mandate was introduced two years ago. Despite this, says SMMT, interest rates, the price of materials and the costs associated with running factories and plants have remained high. They warned that this low demand results in manufacturers not meeting the required percentages of sales, equating to £6bn costs in 2024 alone.
Vauxhall in Luton
Vauxhall has had an incredibly long history in Luton, with some families working there for generations. Opening in 1905, the factory had moved from its original home in South London to Kimpton Road in Luton. When World War I broke out in 1914, the factory earned a proud reputation as it supported the war efforts all the way through to 1918, making cars to help British forces. Following the war, they were actually bought out in 1925 by General Motors, an American company.
Just before the break out of World War II in 1931, the famous Bedford trucks and buses were produced in Luton. World War II saw the Vauxhall Luton factory, once again, step up and support the country and allied forces. The staff in Luton produced lorries for the war efforts, and later produced Churchill tanks. Tragically, during one German bomber raid, 39 workers lost their lives.
In 1989, a £50m revamp began on the factory. By 2002, however, Vauxhall had halted its car production at the factory which resulted in nearly 2,000 jobs losses. Van production was to continue. Recent history saw GM being bought out by French firm, PSA Group, which later merged with another company to become Stellantis.
And that brings us to the modern day, with the final closure being announced and an end to a very long and proud history from one town.
