Vauxhall Luton factory receives major £400million update after closure caused 1,100 job losses

Felix Reeves

By Felix Reeves


Published: 22/01/2026

- 16:01

Stellantis pledged £50million for its Ellesmere Port factory after closing the Luton plant

Plans have finally been confirmed for a £400million regeneration of the former Vauxhall Luton factory site, months after more than 1,000 employees lost their jobs.

Property group Goodman purchased the 89-acre site in Luton following the end of the vehicle production in March last year.


Vauxhall owner Stellantis announced in November 2024 that it would invest £50million into its Ellesmere Port facility to enhance its electric vehicle manufacturing ability.

However, this meant that its Luton factory would be closed, with an estimated 1,100 jobs being cut, as well as a £310million blow to the local economy.

This came just months after Stellantis confirmed that the manufacturing of electric vans would begin at the Luton plant for Vauxhall, Citroen, Peugeot and Fiat Professional.

Mark Noble, Luton Plant Director and Stellantis UK Manufacturing Lead, said this was a "fitting way to mark Luton's 120th anniversary".

The plant was formally closed in April 2025, prompting a furious response from Luton Council, describing the actions of Stellantis as "heartbreaking" and a "devastating blow" to the area and its workers.

Fresh plans from Goodman would redevelop the old site into a "high-quality commercial and industrial park", with plans for this to create more than 1,700 direct jobs.

Vauxhall's Luton factory

Stellantis closed the Luton factory last year, despite the loss of 1,200 jobs

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REUTERS

When outlining plans last year, Goodman said it would work alongside Luton council, local business groups and the community to further develop its plans.

The new planning applications have now been submitted to Luton Borough Council, which noted that it would be taken into consideration.

Councillor James Taylor, who is responsible for regeneration, said: "The submission of the planning application is a major milestone in the future of this key strategic site.

"We have been encouraged by Goodman's approach to the regeneration, particularly the vision for a mix of new commercial and industrial uses, as well as the speed in which they are acting to bring this site back into use."

An artist's rendition of how the Vauxhall site will look following the Goodman redevelopment\u200b

An artist's rendition of how the Vauxhall site will look following the Goodman redevelopment

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GOODMAN

The BBC reported that an application had been approved to take down the existing factory buildings, ahead of work expected to start in 2027.

Jason Harris, commercial director at Goodman, said the group wanted to deliver a "transformational regeneration scheme" for the area.

He continued, saying: "This will attract new businesses to Luton and create a mix of jobs from a range of sectors.

"We recognise the social and economic significance of the site to Luton and will work closely with Luton Council and the local community as we bring forward our plans to deliver a major contribution to the long-term economic growth of the town."

Stellantis manufactured the final Vauxhall Vivaro van on March 28, 2025, at the Luton factory\u200b

Stellantis manufactured the final Vauxhall Vivaro van on March 28, 2025, at the Luton factory

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GETTY

Fernando Andreu, who was recently confirmed as the new Plant Director of Ellesmere Port, also operated at the helm of the Luton factory prior to its closure.

He said: "I look forward to continuing the great work already done by Diane [Miller] and expanding electric vehicle production at Ellesmere Port, to continue improving plant efficiency in a context where UK demand for BEV vehicles still needs to be boosted.

"Building on our employees' expertise, the introduction of medium-sized battery electric LCVs will further strengthen our position as the UK's first and only EV-dedicated volume manufacturing plan."