Minister warns of ‘challenges’ for car makers on top of Luton plant closure
Vauxhall owner Stellantis’ decision to close its Luton factory, putting 1,100 jobs at risk, came after Government efforts to save the plant failed.
The problems facing car manufacturers as they shift to electric vehicles are not confined to Stellantis, Business Secretary Jonathan Reynolds warned after the Vauxhall owner announced plans to close its Luton plant.
Mr Reynolds said ministers did “everything we possibly” could to prevent the closure, which Stellantis said was made within the context of the “stringent” UK zero-emission vehicle (ZEV) mandate.
The Business Secretary confirmed plans to review the ZEV mandate, which sets strict targets for manufacturers to sell electric vehicles, as part of a consultation on the Labour government’s plan to ban the sale of new “purely petrol and diesel” cars by 2030.
Mr Reynolds said the announcement of the Luton closure, which puts 1,100 jobs at risk, was a “dark day”.
But in a warning there could be further problems, beyond the Stellantis announcement and Ford’s plans to shed 800 jobs over three years, Mr Reynolds told MPs: “These challenges are not confined to any one company.
“Car manufacturers around the world are battling with increased costs, supply chain issues and changing consumer demand in a highly competitive, fast-evolving market.”
He added: “Many of the challenges faced by our car manufacturers are global in nature and they cannot be resolved by UK government intervention alone.”
But he said that “decarbonisation must not mean deindustrialisation” and promised to work with the industry on the transition to cleaner cars and vans.
“Winning the race to net zero and having a world-leading automotive sector must go hand in hand,” he said.
