THE BEDFORDSHIRE business community is ready to play its part in helping Luton to bounce back from the shock news of the proposed closure of the Vauxhall factory in the town.
Vauxhall parent company Stellantis announced last week that it plans to shut the plant in Kimpton Road, with the potential loss of 1,100 jobs, and move its manufacturing activity to the factory at Ellesmere Port on Merseyside.
Luton Council estimates that up to 3,700 jobs – including in Vauxhall’s supply chain – are in jeopardy, with a potential cost to the Luton economy of £310 million.
Its decision reflects the broader challenges facing the automotive sector, including the shift towards electric vehicles, compliance with the Zero Emission Vehicle mandate, increasing competition from cheaper imports and dampened demand across the sector.
Bedfordshire Chamber of Commerce, which represents the county’s business community, said Stellantis’s decision to shut the Luton factory was “undeniably a blow to the town”.
Chamber chief executive Justin Richardson added: “The timing of this decision has shocked many, particularly as the company had previously expressed confidence in meeting the Zero Emission Vehicle mandate rules.
“In our previous discussions with Vauxhall, the focus has consistently been on how government policies can better support market dynamics and stimulate demand for EVs.”
Luton Council leader Cllr Hazel Simmons said: “We will not let this happen without a fight and on hearing about the plans we immediately arranged meetings with the plant’s management, trade unions and MPs to explore what can be done to save the plant and the jobs.
“Vauxhall has been an integral part of Luton’s heritage for decades and we will do all we can to stop this closure going ahead.”
The Luton and wider Bedfordshire business community remains committed to supporting Vauxhall workers, suppliers and the town “wherever possible”, said Justin.
The Chamber is confident that, should the closure proceed, Luton will bounce back. More than £5 billion of investment is in various stages of delivery for the town, headed by London Luton Airport’s expansion – a decision on its plans is eagerly anticipated – and the new stadium project, currently under construction, for Luton Town FC at Power Court.
“Vauxhall has been an integral part of Luton, contributing significantly to the town’s economy and identity,” said Justin. “But it is all important to remember that Luton’s story is one of resilience and transformation. The town continues to grow, innovate and attract significant investment. Within just a mile radius of the plant, we see evidence of this momentum, with £5 billion worth of investment either completed, under way or in the pipeline.
Both projects will lead to growth, new jobs and wider opportunities, he said, reinforcing Luton’s strategic importance as a regional hub.
“It underscores the critical need for collaboration between businesses, policymakers and local stakeholders to navigate the challenges of a transitioning economy while securing a brighter future for the town and its people,” Justin said.
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