VAUXHALL has announced it will close its factory in Luton, putting around 1,100 jobs at risk.

Stellantis, the owner of Vauxhall, have said it will move its electric van production at its other UK plant in Ellesmere Port, near Chester.

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The famous car brand currently produces its electric cars and vans at the Ellesmere Port facility, while their larger petrol and diesel vans are made in Luton.

The decision comes just weeks after the multi-national firm, which also owns the likes of Citroen, Fiat, Jeep, Peugeot and Maserati, warned it may halt production in the UK.

Stellantis, who are Europe’s second-biggest maker of cars, have been weighing up their options after months of discussions with the UK government over their electrification rules.

The ZEV Mandate, which are the strict new rules that aim to limit the sales of new petrol and diesel vehicles in the UK ahead of a 2035 ban, have been critised by the car giant for its proposed penalties on car-manufacturing.

As reported by PA, the Vauxhall owner said: “Whilst strengthening Ellesmere Port as its sustainable light-commercial vehicle hub in the UK with the transfer of Luton operations, Stellantis remains committed to acting responsibly toward its employees in Luton and, if the company proposal is approved, will offer relocation support to facilitate employees wishing to transfer to the Ellesmere Port site with an attractive package, where hundreds of permanent jobs will be created.

“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.”

In June, the company’s former UK boss, Maria Grazia Davino, said: “Stellantis UK does not stop, but Stellantis production in the UK could stop”.

Then, in an update in October, boss Carlos Tavares further urged ministers to relax the rules around EV production.

Tavares called on the government to “help to stimulate the demand” for EVs and cemented that the current threshold for green sales is approximately double the “natural” levels of demand.

After today’s news, a government spokesman said: “While it’s encouraging to see Stellantis investing in the future of its Ellesmere Port plant, we know this will be a concerning time for the families of employees at Luton who may be affected.

“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 £300 million to drive uptake of zero emission vehicles and £2 billion to support the transition of domestic manufacturing.”

Business Secretary Jonathan Reynolds added it was a “very difficult day for Luton”.

Vauxhall, who have run for 167 years, are one of the UK’s best-known car manufacturers.

Their current range includes the Astra, Corsa, Mokka, Crossland and Grandland, as well as the recently revised Frontera.

This comes as Stellantis’ rival Volkswagen announced they will shut at least three of its factories in Germany and lay off tens of thousands of staff.

The German car-making giants will also shrink their remaining plants and cut staff pay by 10% in a deeper-than-expected overhaul of one of the world’s most recognisable brands.