LONDON – Stellantis (NYSE: STLA) plans to shut its Vauxhall van factory in southern England, putting more than 1,000 jobs at risk as it joins rival automakers in scaling back operations in a difficult trading environment.
The company, which also owns the Peugeot, Citroën, Chrysler, and Fiat brands, said on Tuesday it would consolidate its British production of light commercial vehicles at its Ellesmere Port site in northern England, where it is investing 50 million pounds ($63 million) in an all-electric vehicle hub.
The US-listed company said it planned to relocate “hundreds of jobs” from Luton, which is close to London in the south, to Ellesmere Port, and it had started a consultation with employees and unions.
The British government said Stellantis’ investment in its Ellesmere Port plant was encouraging, but it would be a concerning time for the families of employees at Luton.
The company, born out of the 2021 merger between Fiat Chrysler and Peugeot maker PSA, did not state how many jobs would be affected.
In June, Stellantis (NYSE: STLA) called on the government to do more to boost demand for electric vehicles (EVs) to help it comply with rules requiring automakers to sell more EVs, cautioning that inaction could lead to a halt of its British production.
The announcement came as automakers such as Volkswagen, Ford Motor (NYSE: F), Nissan, and General Motors (NYSE: GM) are cutting jobs in response to softening demand for EVs, which consumers see as too expensive, and increasing Chinese competition.
European carmakers are also facing the possibility of an indirect hit from U.S. President-elect Donald Trump’s pledge to impose tariffs on imports to the U.S. from Mexico.
In September, Stellantis issued a profit warning, with forecasts for a cash burn of up to 10 billion euros in 2024.
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