Vauxhall owner Stellantis will start making electric vans at its Luton plant next year.
In a major boost for the UK motor industry, the company will today outline plans to start production in spring 2025.
Stellantis, one of the biggest carmakers in the world, said it was a sign of ‘confidence’ in the plant’s future. It comes after it made its Ellesmere Port factory its first site globally to produce only electric cars.
But the Citroen and Peugeot maker urged the Government to do more to stimulate demand.
Concerns over insufficient charging infrastructure and the cost-of-living crisis have dampened demand.
Production drive: Vauxhall owner Stellantis announced it will start making electric vans at its Luton plant from Spring 2025
This month, the British arm of electric car firm Arrival collapsed into administration, putting nearly 200 jobs at risk.
Electric lorry firm Volta filed for bankruptcy in October, affecting 600 British jobs. It said it was unable to produce as many trucks as it expected after the collapse of battery maker Proterra, a key supplier.
And Elon Musk’s Tesla and Chinese giant BYD have been in a price war to win customers. Last year BYD overtook Tesla as the biggest maker of zero-emission cars in the world.
In January there were 60,517 new electric vans on UK roads since 2018. Electric models accounted for 5.9 per cent of the van market in 2023 – expected to grow to 9.4 per cent this year – Society for Motor Manufacturers and Traders data showed, as it added that lack of charging points ‘remains the biggest barrier to faster rollout’.
Stellantis UK group managing director Maria Grazia Davino said: ‘While this decision demonstrates Stellantis’ confidence in the plant, this first step in its redevelopment 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.’
Work to prepare the plant in Bedfordshire, which opened in 1905, will start this year.
The site will produce medium-sized electric vans for Vauxhall, Citroen, Peugeot and Fiat Professional. The company will continue to make petrol- and diesel-powered vehicles at Luton.
It will manufacture mainly for the UK, and make left-hand drive vans for Europe. Stellantis had a 47.9 per cent electric van market share in 2023, it said.
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