Vauxhall owner to decide fate of Luton factory within ‘next few weeks’

Stellantis, owner of Vauxhall; Alfa Romeo; Chrysler and Citroën, said in June that it could be forced to close plants if government rules on electric vehicles were not relaxed.

Carlos Tavares, the outgoing CEO of Stellantis, has said the company is nearing a decision on the future of the plant in Luton.

The site on Kimpton Road 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.

Stellantis was approached by Luton News for a comment but did not receive a response by the time of publication. It is not yet known when Stellantis will make its decision.

Tavares said the company had discussed with officials for several months how the government could “help to stimulate demand”, Bloomberg has reported.

Car manufacturers have put on the pressure for the government to subsidise electric vehicles sales as they try to comply with the mandate to phase out of new petrol and diesel cars, and the switch to electric cars, over the next six years.

By 2025, 28 per cent of new cars must be zero-emissions vehicles and ten years later, all new cars must be electric.