Car maker giant Stellantis has announced plans to close its 120-year-old factory that makes many Vauxhall cars, leaving more than 1,000 employees with the daunting dilemma of moving 140 miles north or losing their jobs.
The $205 billion carmaker said it plans to cease operations at its Luton truck manufacturing facility north of London in April to consolidate Vauxhall manufacturing at its Ellesmere Port plant in the northwestern county of Cheshire, which Description of Stellantis As the first all-electric vehicle manufacturing facility in the UK.
Stellantis is struggling with UK rules on selling a minimum number of electric cars before a ban in 2035 as demand for next-generation cars falters.
The previous Conservative government of former Prime Minister Rishi Sunak implemented it Strict emissions targets For automakers last year, that would gradually increase the number of electric vehicles an automaker must sell before imposing a total ban on carbon-emitting vehicles in 2035.
In 2024, electric vehicles should make up 22% of carmakers’ car sales and 10% of van sales in the UK. This number will gradually increase in the coming years.
Companies face a fine of £15,000 for every car sold above these limits, although carmakers that do not meet this target are able to buy credits from the companies that make them.
Stellantis, which also owns European brands such as Peugeot, Citroen and Fiat, has reason to be concerned about the ambitious targets.
Besides the faltering US push, the company said in October that its European market was affected by “production gaps in several models as the global product shift begins… and headwinds from the challenging European market environment.”
In September, the group lowered its operating margin forecast from double digits to between 5.5% and 7% due to the deterioration of the global market and the entry of Chinese competitors.
Transferring a “slap in the face” to workers
Stellantis said it would offer “relocation support” and an “attractive package” to hundreds of employees if they agreed to move to northwest England, adding that it was negotiating with unions over the terms of the transfer.
British Business Secretary Jonathan Reynolds said the transfer announcement was “a better outcome that could have been”.
However, Unite, the union representing Vauxhall workers in Luton, He said The announcement was a “complete slap in the face” to staff who were facing a 140-mile transfer, as the crow flies.
“Whatever positive benefits this plan may bring to Ellesmere Port, it is unacceptable.
“We stand ready to support our members in doing everything we can to ensure that historic vehicle manufacturing in Luton is preserved and we call on the Government to do the same.”
A Stellantis representative did not immediately respond to a request for comment.
Stellantis has threatened on several occasions in the past to close its Vauxhall factory. In May last year, the carmaker said it may have to close its factory in Luton if the UK did not renegotiate Brexit deals that would see import tariffs of up to 10% on car parts into the EU.
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