Vauxhall van expansion drives out Brexit fears
THE future of Vauxhall’s van plant at Luton has been secured for the next decade after its French owner announced plans to increase production by more than 60 per cent.
Peugeot and Citroen maker PSA, which bought Vauxhall and Opel from General Motors last year, is expected to invest about £100million in the plant, with the UK Government providing £9million towards its expansion.
This will secure 1,400 existing jobs at Britain’s only van plant, as well as creating up to 450 additional roles.
Capacity at the facility, which produced 60,000 Opel/Vauxhall Vivaros last year, will be increased to 100,000. It will build the new Vivaro model from 2019 and is set to add Peugeot and Citroenbranded vans.
The vehicles are used by companies ranging from Royal Mail and British Gas, with 60 per cent produced for export.
PSA chairman Carlos Tavares, pictured, said: “This is a major milestone for the future of the Luton plant.”
Opel/Vauxhall chief executive Michael Lohscheller added: “This is a clear recognition of the skilled people who have customer satisfaction at the core of their priorities.” PSA said that a decision on Vauxhall’s other plant in Ellesmere Port, where the Astra car is made and where 650 job cuts have been announced, would not be made before 2020. The announcement is a boost for the Government amid concerns that carmakers could axe jobs and move production outside the UK after Brexit. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “This announcement is great news for the UK automotive sector and, especially, the Luton plant.
“The UK continues to be a centre of excellence for vehicle production thanks to our engineering expertise, high levels of productivity and a collaborative relationship with government which has enabled us to build a robust industrial strategy and a sector deal.”