The decision secures jobs at the plant and provides a major boost to the Luton economy. It ends fears for the future of the Luton plant and safeguards more than 1,000 jobs.
It has been welcomed by businesses across the town. A Vauxhall spokesman said: “The Luton plant will continue to play an important role in the Opel/Vauxhall manufacturing network.”
The announcement follows the joint announcement between Opel/Vauxhall and Renault in September last year, when both companies agreed to continue their successful co-operation in the Light Commercial Vehicle segment.
Luton Borough Council has welcomed the decision. Its corporate director for environment and regeneration Colin Chick said: " This is excellent news not only for those employees at the plant but also for the several thousand Vauxhall staff across Luton.
"We congratulate everyone on the hard work that has gone into securing this decision which confirms Vauxhall’s continuing tradition as one of the key employers in Luton and will be welcomed by many other companies in this area as well.
"People in Luton have demonstrated time and again that they are a skilled and flexible workforce who pull together as a team and are able to meet challenges head on, and this is another timely boost to Luton’s continuing regeneration as a high-tech manufacturing base and our bid for city status."