The closure of Vauxhall's Luton van plant is a car crash for the 1,100 workers who could lose their jobs and threatens to trigger a pile-up for a government facing acute pressure from manufacturers over its plans to transition to an electric-only future. Stellantis, Vauxhall's parent company which also owns Citroen, Fiat and Peugeot, has been publicly mulling what to do with its UK operations, split between Bedfordshire and Ellesmere Port, for some time.
The decision was made, it said, 'within the context of the UK's ZEV Mandate', a reference to targets to produce a proportion of zero-emission vehicles each year or face stiff penalties. Introduced by the last Conservative government, this year the target is 22% for cars, rising to 28% in 2024, en route to a ban on new petrol and diesel car sales the new administration has brought forward to 2030. For every sale outside the mandate, manufacturers will be fined £15,000.
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