The Business Secretary is facing accusations of failing to engage fully with Vauxhall’s parent company Stellantis ahead of its decision to close its Luton truck manufacturing plant – a move that puts up to 1,100 jobs at risk.
Critics claim the government neglected to maintain meaningful dialogue for months despite early warning of a potential lockdown.
Stellantis, which owns the Vauxhall brand, announced last month that it would consolidate its British operations at Ellesmere Port in Cheshire, citing strict zero-emission vehicle quotas in the UK as an “important factor” in its choice to close the Luton site. This news comes against the backdrop of the closure of several major car factories over the past decade, raising new doubts about the future of car manufacturing in Britain.
Jonathan Reynolds, the business secretary, met Stellantis representatives on three occasions in July – shortly after Labour’s election win – when the government was first alerted to the company’s tilt towards closing Luton. However, according to parliamentary records, no further ministerial meetings were held until 26 November, the same day Stellantis publicly confirmed the lockdown plans.
Andrew Griffiths, the shadow Secretary of State for Business and Trade, who asked the parliamentary question, criticized the gaps in participation. “It is clear that the government has not taken the issues in Luton seriously,” Griffiths said. He added that the Chancellor’s latest Budget, with its additional pressures such as higher National Insurance, may have further complicated the environment for manufacturers.
Sources within Whitehall insist Stellantis remained in contact with officials from both the Business and Transport departments over the summer and autumn, to discuss potential support measures for their UK sites. When the lockdown was announced, Reynolds defended the government’s role before the House of Commons Business and Trade Select Committee. He noted that the government was aware of Stellantis’ concerns early on and repeatedly urged the company to reconsider.
In response to the crisis, Reynolds launched a consultation on the UK’s zero-emission car mandate, under which 22% of each carmaker’s sales by 2024 must be zero-emission – rising sharply to 80% by 2030. Industry voices have warned That this timeline may be zero. Over-ambitiousness due to weaker than expected market demand, putting investment and jobs at risk if not managed more flexibly.
A spokesman for the Ministry of Business and Trade confirmed that the government remains committed to the automotive sector. They pointed to ongoing financial support, including more than £300 million to encourage the use of electric vehicles and £2 billion allocated to help local industry transition to net zero.
Meanwhile, trade union Unite has called on Stellantis to suspend the closure of Luton while the company seeks to appoint a new CEO and considers strategic adjustments. The union believes that new leadership could pave the way for a different approach, perhaps protecting jobs and helping the UK retain a strong car manufacturing base.