Stellantis (STLA.MI) has confirmed plans to shut down its Luton van plant in the second quarter of 2025, abandoning previous commitments to manufacture electric vans at the facility. The decision, first reported by British media outlets Autocar and the BBC, will result in the loss of 1,100 jobs.
The closure follows Stellantis’ concerns over the UK’s Zero Emission Vehicle (ZEV) mandate, which requires automakers to meet rising electric vehicle sales quotas or face financial penalties. In 2024, manufacturers must ensure 22% of new car sales and 10% of new van sales are electric, with targets increasing in 2025. The company had earlier suggested that the mandate contributed to the plant’s uncertain future.
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“Production will cease in Luton in Q2 2025, with a period of transforming and transferring machinery and process knowledge to Ellesmere Port,” Stellantis told Autocar. “Production of the group’s medium all-electric LCV range (eK0) in Ellesmere Port will commence in Q4 2026.”
Luton currently produces internal combustion vans under the Opel/Vauxhall Vivaro, Peugeot Expert, Fiat Scudo, and Citroën Dispatch (Jumpy) brands. Stellantis had planned to introduce electric versions, which are currently imported from France’s Hordain plant, but reconsidered amid concerns over demand and lack of government incentives.
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Instead, some operations will shift to Stellantis’ Ellesmere Port factory near Liverpool, where the company has committed to electric van production. However, only “several hundred” jobs are expected to be relocated, leaving uncertainty for the majority of affected workers. Stellantis has pledged to offer retraining or alternative employment options.
The UK government is reportedly in discussions to ease ZEV requirements for automakers with local production, with negotiations expected to conclude by February 18. However, Stellantis’ decision suggests it was unwilling to wait for potential regulatory changes before making its move.