Stellantis recently announced plans to shut down its Vauxhall van factory in southern England. The legacy automaker is consolidating production in Britain as it invests more in electric vehicle (EV) production.
Stellantis’ decision to shut down its Vauxhall van factory puts over 1,000 jobs at risk. However, it argues that jobs from Luton in southern England will be relocated to Ellesmere Port, reported Reuters. The automaker aims to consolidate light commercial vehicles at its Ellesmere Port site in northern England, where it is investing $63 million in an EV hub.
The car maker shared that it has consulted with employees and unions about job relocations. The British government noted that Stellantis’ investment in Ellesmere Port was encouraging. However, the UK government also acknowledged that the impending job cuts would be stressful for the families of workers in Luton.
The British government is reconsidering EV sales targets as more automakers announce job cuts. It plans to open consultations for its Zero Emission Vehicle (ZEV) mandates, encouraging automakers to produce more zero-emission vehicles and steer away from internal combustion engines.
Automakers have argued against the ZEV mandates, stating that it threatens jobs and Britain’s appeal as a manufacturing hub. The general consensus seems to be that the UK government is pushing the ZEV transition too hard while automakers struggle to sell ZEVs to consumers.
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