Vauxhall’s owner Stellantis has said it is planning to shut down its Luton site in April.
More than 1,100 jobs at the van-making factory are at risk, but Stellantis said it hopes to transfer “hundreds” of jobs to the group’s Vauxhall site in Ellesmere Port.
It is now in consultation with unions and employees over the proposals, which will also see it invest £50m into the Ellesmere Port factory.
A spokesman for the company said that Stellantis “remains committed to acting responsibly towards its employees in Luton”, and that it would offer relocation support to help Luton employees transfer to the Ellesmere Port site if possible, and if the company proposal is approved.
The spokesman added: “Dedicated comprehensive job support, including opportunities for retraining for all employees affected, will also be implemented in the very active Luton area, just one mile from the international airport.
“At the same time, Stellantis will work with local government and local employers to identify new employment opportunities within the Luton area for Stellantis employees who might be impacted by this proposal if it goes ahead.”
Last year, Stellantis warned of “significant job losses” in the UK if the Brexit deal was not renegotiated.
Stellantis is the fourth largest carmaker in the world, employing more than 5,000 people in the UK. Its other brands include Citroën, Peugeot, Fiat, Alfa Romeo and Chrysler
In 2021, it committed to making electric vehicles (EV) at its Ellesmere Port and Luton plants.
However, a company spokesperson told a Commons inquiry into the supply of batteries for EV manufacture that the firm’s UK investments were at risk due to the terms of the Brexit deal.
The company described the deal as a “threat to our export business and the sustainability of our UK manufacturing operations”.
It asked the Government to make an agreement with the EU to keep existing rules until 2027, rather than changing the rules in 2024 to state that 45 per cent of an electric car’s value should originate in the UK or EU to qualify for trade without tariffs.
Stellantis said the rise in the cost of raw materials during the pandemic and energy crisis meant it was “unable to meet these rules of origin”.
On Monday, Stellantis shares dropped at the Paris Bourse stock market, weighed down by statements from Donald Trump threatening to increase tariffs on products from China, Canada and Mexico.
A Government spokesperson said: “We have a longstanding partnership with Stellantis and we will continue to work closely with them, as well as trade unions and local partners, on the next steps of their proposals.
“The Government is also backing the wider industry with over £300m to drive uptake of zero-emission vehicles and £2 billion to support the transition of domestic manufacturing.”
