Closure of Vauxhall plant 'major threat' that could cost Luton economy £150m per year - but consultation continues despite CEO's resignation
The proposed closure of Luton's Vauxhall plant is a "major threat" that could cost the town £150m a year.
Rachel Hopkins MP for Luton South has urgently called on the Secretary of State for Business and Trade, Jonathan Reynolds, to meet with workers and trade union representatives – and he has accepted the invitation.
There have also been calls to halt the consultation and proposed plant closure amid the resignation of Carlos Tavares, Group CEO at parent company Stellantis.
However, Stellantis has confirmed that there will be "no changes to the proposals" despite his departure, and that it is "engaged with all interested parties" during the ongoing consultation period.
In a letter to the Secretary of State, Ms Hopkins stated: "The situation requires urgent action.
"1,600 jobs and thousands in the wider supply chain are at risk a month before Christmas. It's these workers who have gone above and beyond to drive efficiencies and cut costs to improve Stellantis's profit margins.
"They are repaid with fast plant closure by Q2 2025 and an offer of relocation to the Ellesmere Port site, which may simply be impractical for many workers and their families."
Ms Hopkins confirmed that the Secretary of State had promised to "deploy his department to provide whatever help is required".
Meanwhile, Ms Hopkins has requested that the government pursues "every avenue available" to protect the plant.
Her letter continued: "The announcement is a major threat to our town's future growth. If the plant is closed, I have been informed by Luton Council that up to £150m could be lost from the local economy per annum and potentially £160m from further supply chain impacts."
In response to the resignation of Taveres, Save Our Town claimed on social media: "A Stellantis statement has said that a replacement is expected by the middle of 2025. In these circumstances it is inconceivable that Stellantis continue with the closure. We call for the immediate postponement of the Luton plant plans."
A spokesman for Stellantis, said: "There are no changes to the proposals made despite the resignation of the CEO. For the other questions, these remain as proposals from the company and we are actively engaged with all interested parties in this consulation period."
Councillor Hazel Simmons MBE, Leader of Luton Council, said: “The news that Vauxhall plans to close its van making factory in Luton is a devastating blow for our town.
“First and foremost, our thoughts are with the employees and their families who have received this deeply distressing news.
“The impact of this proposal on our town should not be underestimated, with a potential loss of 1,200 jobs at the plant and a further 2,500 from the wider supply chain, and an estimated blow to the local economy of £310m.
“We won’t let this happen without a fight and on hearing about the plans we immediately arranged meetings with the plant’s management, trade unions and MPs to explore what can be done to save the plant and the jobs.
“Vauxhall has been an integral part of Luton’s heritage for decades and we will do all we can to stop this closure going ahead.”