Luton Vauxhall plant to close in April: comment

“This news is a tragedy for the community in Luton, but the idea that it has anything to do with the Government’s EV sales targets is for the birds. 

“While the ZEV mandate has been in effect for little more than a year, the plant’s future has been under threat for decades. In 2023, before the ZEV Mandate had even come into effect, the company was blaming Brexit for the plant’s difficulties. [2] 

“Just one month ago, Stellantis was putting out press releases proudly announcing that it had complied with the Government’s EV sales targets in their first year. [3] When the shuttering of the Luton plant was announced last year, industry experts said at the time that it looked like the company was choosing to blame the Government for a closure that would have happened anyway. [4]

“The reality is that the mandate is working. Analysis has found that, far from struggling to meet their EV targets, the industry as a whole managed to hit them in their first year. And with EV prices being driven down as manufacturers compete to hit these targets, more and more UK drivers are able to make the transition to cheaper and cleaner electric driving.

“The reality is that global electric vehicle sales only going in one direction – up. Slowing, rather than accelerating, the UK’s shift to building the EVs that our major export markets increasingly demand is a recipe for industrial decline and jobs losses. Far from being a threat to the UK car industry, the EV transition is what will secure its future. Analysis by CBI Economics has found that a rapid transition to building EVs, and the car industry’s economic output could increase by over £16bn and 167,000 additional jobs could be created. Fail to make the shift, and the car industry’s economic output could crash by £34bn, or 73%, and over 400,000 jobs could be lost.” [5]