The UK’s world-leading auto sector received a further vote of confidence today after it was announced that the next generation Vauxhall Vivaro with be manufactured at PSA’s Luton site from 2019.
The announcement is testament to the plant’s highly-skilled workforce and will ensure manufacturing remains in the UK for years to come.
Business Secretary Greg Clark welcomed the decision during a visit to the plant in Bedfordshire today alongside PSA group Chief Executive Carlos Tavares, leader of Luton Borough Council Hazel Simmons and Union leaders.
As part of the announcement, Vauxhall has committed to invest further in the plant, supplementing £9 million of government funding to install a new manufacturing platform. The deal has been aided by a range of support from local government, including help with recruitment, skills and efficient energy.
Prime Minister Theresa May said: “Vauxhall’s decision to invest in the United Kingdom is testament to the world-renowned expertise of the British automotive industry and workforce.
“Through our modern Industrial Strategy, we are investing in the technological developments of tomorrow – ensuring we remain the natural choice for innovative firms to prosper.”
The platform will allow the Luton plant to produce the next generation of Vivaro vans, with the aim of increasing existing output from around 70,000 vehicles per year to 100,000. The platform will also optimise manufacturing processes allowing the plant to bid for future vehicle lines as they become available.
Business Secretary Greg Clark said: “Today’s decision is a vote of confidence in Vauxhall’s high skilled workforce and the UK’s world leading automotive sector. This investment in upgrading the production platform will safeguard and grow jobs, ensuring the future of the Luton plant well into the next decade and help ensure the plant is well positioned for future Vauxhall models to be made in the UK.
“We have been clear in our commitment to the automotive sector which is why, through the Industrial Strategy, we established a landmark Automotive Sector Deal that will see us working with industry to put the UK at the forefront of new technologies.”
Today’s announcement will help secure the jobs of more than 1,400 people in Luton and builds on the firm’s strong association with the town for more than a century.