Stellantis has announced plans to close the historic Vauxhall factory in Luton, as part of a scheme to ‘consolidate’ its electric van manufacturing at its Ellesmere Port factory in Cheshire.

The company, which as well as Vauxhall owns brands including Citroen, Fiat, and Peugeot, said that medium electric van production currently scheduled for Luton would be shifted to Ellesmere Port, which already makes small electric vans including the Citroen E-Berlingo, Vauxhall Combo Electric, Peugeot E-Partner, and Fiat Professional E-Doblo.

Stellantis said it had begun a consultation with employees and trade unions about its plans, and said if the scheme went ahead, a “comprehensive support plan” would be enacted for Luton employees, including the relocation of hundreds of jobs to Ellesmere Port.

Stellantis said it would also be investing £50 million in the Ellesmere Port plant.

It said its proposals were being made within the context of the UK Government’s ZEV mandate, which requires manufacturers to sell a rising proportion of EVs annually, or potentially incur fines.

Reacting to the announcement, a spokesperson for trade union Unite said: “The proposal that has been tabled today has been a complete slap in face for our members in Luton, where Vauxhall vehicles have been manufactured for 120 years. Whatever the positive benefits this plan may have for Ellesmere Port, that is not acceptable.

“We stand ready to support our members in doing whatever we can to ensure that historical vehicle manufacturing is maintained in Luton and we call on the government to do the same.”