In a significant boost to the UK automotive industry, Stellantis, the parent company of Vauxhall, has revealed plans to commence the production of electric vans at its Luton factory next year. This strategic move not only secures the future of 1,500 jobs at the site but also marks a pivotal step towards sustainable manufacturing within the sector.

The decision comes after Stellantis previously warned that it might close its UK operations if tariffs were introduced on UK-EU exports. However, a last-ditch agreement between Westminster and Brussels has facilitated this new investment, ensuring the Luton plant's operational continuity.

The Luton facility is set to produce up to 100,000 medium-sized electric vans annually. This production line will focus primarily on right-hand-drive vans for the UK market, including popular models such as the Vauxhall Vivaro, Peugeot e-Expert, Citroën ë-Dispatch, and Fiat E-Scudo. While these models share near-identical designs, their sales strategies are tailored to different national markets.

This announcement follows Stellantis' commencement of electric van production at its Ellesmere Port factory in Cheshire. The shift from manufacturing passenger cars to commercial vans at Ellesmere Port was a strategic move that prevented the facility's closure, highlighting Stellantis' commitment to adapting its operations in line with evolving market demands and environmental considerations.