Stellantis, the owner of car brands such as Vauxhall and Peugeot, is to start manufacturing electric vans at its historic Luton plant from 2025 in a move which will safeguard around 1,500 jobs.
The Netherlands-headquartered group will produce medium-size electric vans for Vauxhall, Citroën, Peugeot and FIAT Professional at the factory.
The site first opened its doors in 1905 and has been producing vans since 1932 while work is expected to start this year to prepare the plant for production.
When complete, the Luton factory will become the second Stellantis plant in the UK to manufacture electric vehicles, following Ellesmere Port.
Stellantis has not confirmed how much the investment in its Luton plant will total. However, when it announced similar plans for its Ellesmere Port site in 2021, it said the project would cost £100m.
The Luton plant will produce the fully electric Vauxhall Vivaro Electric, Opel Vivaro Electric, Peugeot E-Expert, Citroën ë-Dispatch and Fiat Professional E-Scudo in both right and left-hand drive.
Production of the equivalent internal combustion engine (ICE) vans will continue alongside the electric versions.
Stellantis is headquartered in The Netherlands.
Mark Noble, Luton plant director and Stellantis UK manufacturing lead, said: “Following the transformation of our Ellesmere Port facility to produce all-electric compact vans, I’m pleased to announce that we will commence limited production of our medium electric van in Luton from next year, when the first customer vehicles will roll off the production line.
“Not only is this a fitting way to mark Luton’s 120th anniversary, but this decision also demonstrates confidence in the plant and marks the first step in its re-development as we look towards a fully electric future.”
Vauxhall, Peugeot, Citroën and Fiat Professional are currently the only mainstream automotive brands to produce vans in the United Kingdom.
Stellantis’ brands also include Abarth, Alfa Romeo, Chrysler, Dodge, DS Automobiles, Jeep, Lancia, Maserati, Opel, Ram, Free2move and Leasys.
Maria Grazia Davino, group managing director, Stellantis UK, added: “Whilst this decision demonstrates Stellantis’ confidence in the plant, this first step in its re-development towards a fully electric future requires the UK Government to stimulate more demand in the electric vehicle market and support manufacturers that invest in the UK for a sustainable transition.”
The announcement comes after Stellantis’ revenues rose seven per cent in the third quarter despite a major multi-billion pound hit from strike action in the US.
The revenue rise was as a result of growing production in almost every region bar Asia and more than a third jump in global battery electric vehicle (BEV) sales.