Luton’s MP has said it is “more important than ever” that the government meet Luton workers after the CEO of the parent company planning to close Vauxhall’s van plant resigned.
Last week it was announced that Stellantis was proposing to end more than 100 years of automotive manufacturing in the town and move all its operations to Ellesmere Port in Merseyside, putting 1,100 workers at risk of losing their jobs.
Yesterday, Carlos Tavares, the CEO of Stellantis, quit his role with immediate effect a year earlier than planned at the end of a 2024 in which their shares have lost about 40 per cent of their value.
The company’s senior independent director, Henri de Castries, said: “Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the board and the CEO. However, in recent weeks different views have emerged which have resulted in the board and the CEO coming to today’s decision.”
It is not yet clear whether Mr Tavares’ resignation will affect the planned closure of Luton’s Vauxhall plant, which next year had been due to start making the Vivaro electric van.
In a post on X (formerly Twitter), Luton South and South Bedfordshire MP, Rachel Hopkins, wrote: “After yesterday’s announcement that the CEO of Stellantis, Carlos Tavares, has resigned, it is more important than ever that the Secretary of State meet with workers and trade union reps.”
Last week, the Member of Parliament for Luton South called Stellantis’ decision “deeply troubling”, and after a subsequent address in the House of Commons in a follow-up letter to Business and Trade Secretary Jonathan Reynolds, she explained that, according to Luton Council estimations, Vauxhall’s closure will mean an annual £310million loss to the local economy.
During their exchange in the House of Commons, Mr Reynolds agreed to accompany Ms Hopkins to meet Vauxhall workers and trade union representatives at the Kimpton Road site, and in her letter, Ms Hopkins urged the Minister to do so in the next two.
The Labour MP also called on the government to use “every avenue available” to protect the Vauxhall plant, adding: “The Vauxhall plant is part of the fabric of Luton and has been manufacturing vehicles since 1905. It has been a key driver of economic growth and prosperity in our local economy, providing good work for generations of families.
“As you said in the House of Commons, the situation requires urgent action. 1,600 jobs and thousands in the wider business supply chain are at risk. A month before Christmas, it’s these workers who have gone above and beyond to drive efficiencies and cut costs to improve Stellantis’ profit margins.
“They are repaid with a fast plant closure by Q2 (quarter two) 2025 and then offer of relocation to the Ellesmere Port site, which may be simply impractical for many workers and their families.
“The announcement is a major threat to our town’s future growth. If the plant is closed, I have been informed by Luton Council that up to £150million could be lost from the local economy per annum, and potentially a further £160 million from wider supply chain impacts.
“This damage is Luton’s ability to drive sustainable, inclusive growth and tackle inequalities through the Luton 2040 strategy.”
Ms Hopkins added: “I request that the government pursues every avenue available to protect manufacturing production at the Luton plant. This is a request echoed by the Luton plant workforce and their trade union representatives.”
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