Luton's Vauxhall plant under threat of closure unless next government supports EV, warns managing director

The stark warning comes from the UK managing director of Stellantis, who is urging the winner of Thursday's general election to stimulate the market and support manufacturers.

The Kimpton Road plant is due to become the second site in the country to manufacture Vauxhall's electric vehicles, starting in 2025 – but this has now been thrown into doubt.

Maria Grazia Davino, UK managing director of Stellantis, said that a decision will be made in "less than a year".

“You have to make strategies that are based on efficiency. I want to keep the production [in the] UK and I want to be clear on this,” she explained.

“Whoever gets to the government they have to listen … In the UK there will be consequences for sure on the production."

She warned that the UK needed to loosen regulations and create further incentives for businesses to buy electric vehicles.

And she urged the goverment to create more consumer incentives in relation to VAT on vehicles and electricity.

Clarifying the company's position, she added: "Stellantis UK does not stop. Stellantis production in the UK could stop.”

The company owns the Vauxhall, Peugeot and Citroën brands, and has warned that its factories in Ellesmere Port may also have to close.

It was only last year that Luton was chosen to become its second UK plant to manufacture electric vehicles, with the town set to produce the Vivaro Electric – Vauxhall’s medium-size electric van – as well as vans from other Stellantis brands: Citroën, Peugeot and FIAT Professional.

And work is already under way to prepare the factory.

However, at the time, Ms Davino warned: "This first step in its re-development towards a fully electric future requires the UK government to stimulate more demand in the electric vehicle market and support manufacturers that invest in the UK for a sustainable transition.”

It's hoped that the Luton plant will produce the fully electric Vauxhall Vivaro Electric and Opel Vivaro Electric, as well as Peugeot E-Expert, Citroën ë-Dispatch and Fiat Professional E-Scudo in both right and left-hand drive.

However, Ms Davino warned: “The demand is not coming."

The Luton News contacted Stellantis UK but the company did not wish to make any further comment.