Union calls for Stellantis rethink on Luton closure following Tavares departure

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Unite, the union for automotive workers, has called on automotive giant Stellantis to halt the planned closure of its Luton van plant following the resignation of CEO Carlos Tavares.

Stellantis was planning to start production of its medium electric vans at Luton from the first half of 2025

The union is meeting with management today (6 December) to discuss counterproposals to the closure of the site, and said Tavares’ shock departure, announced last Sunday, was an opportunity to “turn the page” on years of failed and aggressive strategies.

Vauxhall and Peugeot owner Stellantis said late November that it was planning to shutter the historic Luton plant and consolidate production at Ellesmere Port, putting more than a thousand jobs at risk.

The announcement follows months of warnings from Stellantis that it could stop production in the UK if the Government didn’t take action to encourage the switch to electric vehicles. The company cited the UK’s stringent ZEV mandate as a critical factor in the plant’s closure.

Stellantis has transformed the Luton plant to start production of its medium electric vans from the first half of 2025.

Unite said the plant is highly profitable and its redevelopment was enabled after workers met every manufacturing cost target asked of them by Tavares, without impacting jobs, pay or conditions.

Carlos Tavares was due to leave Stellantis in early 2026 and his sudden departure follows reports of a boardroom clash over future direction after Stellantis issued a profit warning in September. According to reports, the board felt Tavares was moving too quickly and focusing on near-term solutions, rather than ensuring the company’s long-term security.

Unite said Tavares’ “years’ long strategy of aggressive cost cutting and profiteering led the company into crisis” and warned that the planned closure of Luton was “one final example of Tavares’ failed strategy” that must be halted as the company embarks on the hunt for a new CEO and a new direction.

Sharon Graham, Unite 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 will table counter proposals to management this week, but workers cannot negotiate with a gun to their heads. Stellantis must withdraw the HR1 redundancy notices immediately so workers, management and government can negotiate the future of this vital electric vehicle factory.”

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.