Stellantis confirms plans to manufacture electric vans at Luton plant

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Credit: Stellantis
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Credit: Stellantis

Production of Vauxhall Vivaro Electric and equivalent Stellantis brand models to begin from Spring 2025 - safeguarding a reported 1,500 jobs

Vauxhall has today announced production of its electric van will begin at its Luton plant from the first half of next year, safeguarding a reported 1,500 jobs at the factory.

According to an update from parent company Stellantis, limited production of the Vauxhall Vivaro Electric and equivalent models from other sister brands - including the Peugeot E-Expert, Citroën ë-Dispatch, and Fiat Professional E-Scudo - is to begin from Spring next year.

The decision will make Luton the second Stellantis plant in the UK to manufacture electric vehicles (EVs) after production of the Vauxhall Combo Electric started at the nation's first electric-only volume manufacturing plant at Ellesmere Port in 2023.

While Stellantis already produces electric versions of Vauxhall's Vivaro at its facility in northern France, the auto maker forecasts growing demand for medium-sized electric vans in the future.

SMMT figures for 2023 published last month found UK battery, plug-in, and hybrid vehicle manufacturing accounted for almost two-fifths of all car and van production last year and demand is expected to continue to grow as more companies switch to zero emission fleets.

The Luton plant - which has been manufacturing Vauxhall models for more than a century - is to produce fully electric vans in both right and left-hand drive configurations for domestic and export markets. Production of internal combustion engine vans will also continue at the site.

According to reports, the plant has the capacity to make 100,000 vehicles a year, although in the past decade it has built between 60,000 and 78,000 vans annually.

Mark Noble, Luton plant director and Stellantis UK manufacturing lead, said the announcement was a fitting way to mark the factory's 120th anniversary.

"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," he said.

Industry experts heralded the decision as positive news for the UK auto industry following the threat of Brexit-related trade restrictions for EVs, which previously prompted Stellantis to call on government to revisit UK-EU trade rules or risk seeing EV manufacturing capacity migrate to the continent.

Stellantis had warned it could close UK factories if tariffs were imposed on UK-EU exports, before a deal in December was ultimately struck to delay planned post-Brexit tariffs on EVs.

Maria Grazia Davino, group managing director at Stellantis UK, said: "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."

Stellantis is Europe's leading van manufacturer with 30.4 per cent market share in 2023 and 38.8 per cent of the European electric van market. Moreover, the auto maker accounted for 47.9 per cent of the UK's electric van market last year, with Vauxhall the best-selling manufacturer and the Vivaro Electric the UK's number one electric van brand.

The new Vivaro Electric is to be powered by a 75kWh battery paired with a 100KW electric motor and is capable of achieving a 217-mile range. Stellantis claims a charge of up to 80 per cent can be completed in just 45 minutes from a 100kW rapid charger.

The news comes just days after Vauxhall began welcoming orders for its Astra Hybrid and Astra Sports Tourer Hybrid models - featuring 48-volt hybrid technology for improved efficiency and lower emissions versus equivalent petrol models.

The new hybrid powertrain, also available on New Corsa and Grandland, features a lithium-ion battery with a capacity of 0.89kWh which is automatically recharged under certain driving conditions.

Moreover, Vauxhall recently announced a new offer to provide customers who purchase an electric car or van direct from one of its retailers with one year's free charging credit at 2,700 charging bays at Tesco stores nationwide.

Want to understand what is going on at the cutting edge of sustainability? Check out BusinessGreen Intelligence - the premier information for professionals focused on the UK's green economy.

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