Vauxhall to make three new vans at UK factory

THE French owner of Vauxhall is to ramp up production of vans in the UK even more than predicted.

PSA Group was already expected to announce that it would start to build the new Vauxhall Vivaro van in its factory in Luton next year.

But, in a major boost to Brexit Britain, the manufacturer yesterday revealed it will also produce the next generation of the French-branded Peugeot Expert and Citroen Dispatch vans at the site.

This will be achieved by installing new machinery allowing it to build a wider variety of models.

The investment of around £100million should safeguard the future of the plant’s 1,400 workers for at least a decade and even beyond 2030, long after Britain has left the EU.

PSA said it was aiming to churn out 100,000 vans a year in Luton, boosting production by two thirds from the 60,000 it made last year.

Trade union Unite claimed this would generate up to 400 new jobs at the factory, which has been operating since 1905.

Describing the move as a ‘vote of confidence in Vauxhall’s highly skilled workforce’, Business Secretary Greg Clarke noted that PSA was choosing to boost manufacturing in the UK rather than at its Hordain plant in northern France.

He added that it was significant that the company had made such a long-term commitment to Britain despite concerns over Brexit.

PSA had considered making Vivaro vans in Germany and Poland, but one of the key benefits of the Luton site was that it already has a van paint shop.

Group chief executive Carlos Tavares said the decision on whether to boost overall production came down to a choice between France and the UK. He added: ‘ This is a major milestone for the future of the Luton plant and a key enabler to serve our ambitions in the commercial vehicle market.’ The Hordain plant is running at full capacity and has no room to expand.

Mr Tavares stressed that the firm was committed to Luton ‘ despite Brexit uncertainties’. He said the ‘ clarity’ over the transitional arrangements and assurances from the Government that it is seeking ‘frictionless’ tariff-free trade had given it more confidence to invest.

Theresa May hailed the announcement, saying: ‘ Vauxhall’s decision to invest in the UK is testament to the world-renowned expertise of the British automotive industry and workforce.’

Car makers are worried that Brexit will result in swingeing tariffs being imposed on cars exported from the UK across the EU.

Despite this, foreign manufacturers including Nissan, BMW and Toyota have announced plans to produce new models at existing UK plants since the 2016 referendum.

Around 60 per cent of Vivaro vans are exported but they are also used by some of the UK’s biggest companies, including Royal Mail and BT.

Outside the UK, Vivaros come under Vauxhall’s sister brand Opel.

To help seal the deal, the Government has ploughed £9million of taxpayers’ money into the Luton plant. Mr Clark said: ‘Today’s decision is a vote of confidence in Vauxhall’s high-skilled workforce and the UK’s leading automotive sector.

‘This investment in upgrading the production platform will safeguard and grow jobs, ensuring the future of the Luton plant well into the next decade and help ensure the plant is well positioned for future growth.’

The future of Vauxhall’s Ellesmere Port plant, which makes Astras and employs around 1,300 staff, remains in doubt. Mr Tavares said the crunch decision about whether to keep the factory open will be taken in 2020.

‘Vote of confidence’