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Union calls on Stellantis to cancel Luton closure plan

Union calls on Stellantis to cancel Luton closure plan

Following the resignation of the Stellantis CEO Carlos Tavares, British union Unite has called on the conglomerate to halt the planned closure of the Luton van plant.

Published 10 Dec 2024By CV Show News

Stellantis announced plans to consolidate its electric van production in the UK at the Ellesmere Port plant, closing its factory in Luton and putting 1,100 jobs at risk, last month. It blamed the UK’s zero emission vehicle (ZEV) mandate, which requires more than a fifth (22%) of cars and 10% of vans sold by manufacturers in the UK to be fully electric vehicles (EVs) this year. Days later, Tavares quit over differences in the strategic direction of the company.

Stellantis, which owns several vehicle brands including Vauxhall, Peugeot, Fiat and Citroen, said that the process to appoint the new permanent CEO was under way, with an announcement expected in the first half of 2025. A new Interim executive committee, chaired by John Elkann, will be established until that appointment is made.

Stellantis has started a consultation with its employees and trade unions on the proposal, which includes £50 million being spent on the factory in Cheshire. The union met with Stellantis management on December 6 to discuss counter-proposals to the site’s closure, with Unite saying that Tavares’ exit gives the company the opportunity to cancel its decision.

Sharon Graham, Unite’s general secretary, said: “The exit of CEO Carlos Tavares is an opportunity for Stellantis to turn the page on years of aggressive anti-worker strategies which now threaten to close a profitable plant which is ready to produce thousands of electric vans next year. Unite shop stewards cannot negotiate with a gun to their heads. Stellantis must withdraw the redundancy notices immediately so workers, management and Government can negotiate the future of this vital electric vehicle factory.”

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