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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 unveil plans to begin production in spring 2025.
Stellantis, one of the world’s largest automakers, said it was a sign of “confidence” in the plant’s future. This comes after it made its Ellesmere Port factory its first site globally to solely produce electric cars.
But the maker of Citroën and Peugeot urged the Government to do more to stimulate demand.
Concerns about insufficient charging infrastructure and the cost of living crisis have dampened demand.
Production boost: Vauxhall owner Stellantis has announced it will begin manufacturing electric vans at its Luton plant from spring 2025.
This month, the British subsidiary of electric car company Arrival collapsed and entered administration, putting almost 200 jobs at risk.
Electric truck company Volta filed for bankruptcy in October, affecting 600 British jobs. He said he was unable to produce as many trucks as he 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 world’s largest zero-emission carmaker.
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 and are expected to grow to 9.4 per cent this year, they showed the data from the Society of Motor Manufacturers and Traders, as he added. that the lack of charging points “remains the biggest obstacle to faster implementation.”
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 an all-electric future requires the UK government to stimulate further demand. in the electric vehicle market and support manufacturers who invest in the UK for a sustainable transition.’
This year, work will begin to prepare the Bedfordshire plant, which opened in 1905.
The plant will produce mid-size electric vans for Vauxhall, Citroën, Peugeot and Fiat Professional. The company will continue to manufacture petrol and diesel vehicles in Luton.
It will manufacture mainly for the UK and will make left-hand drive vans for Europe. Stellantis had an electric van market share of 47.9 percent in 2023, he said.
