The owner of Vauxhall has announced that it plans to close its van factory at Luton, in a decision that will put 1,100 jobs at risk of cuts or moving location.

Stellantis said it will shift van production from Luton, Bedfordshire, to another factory at Ellesmere Port, Cheshire, blaming the UK’s economic conditions and the government’s zero-emission vehicle (ZEV) mandate.

The decision is a bitter blow to the UK car industry, as carmakers around the world struggle with slower demand and intense competition.

The Luton factory employs 1,100 people. Stellantis said several hundred new jobs will be added at Ellesmere Port in order to cover the increased production. Some workers at Luton will be able to move to Ellesmere Port.

Stellantis said the shift would result in “greater production efficiency”.

More details soon …