Stellantis, the multinational automotive corporation, announced plans to commence production of medium-sized electric vans at its Luton plant in England by 2025. This decision marks a significant milestone for the historic factory, which has been manufacturing vans for over nine decades.

Electric van production

Starting from spring 2025, the Luton plant will roll out five electric models, including the Vauxhall Vivaro Electric, Peugeot E-Expert, and Fiat Professional E-Scudo, catering to both right- and left-hand drive markets. This move aligns with Stellantis’ commitment to expanding its electric vehicle portfolio and meeting the growing demand for eco-friendly transportation solutions.

Continued operations

While venturing into electric van production, Stellantis reassures that the Luton plant will continue manufacturing combustion engine models alongside electric variants. This dual approach underscores the company’s strategy to transition towards sustainable mobility while maintaining operational flexibility.

Investment details

Although specifics regarding investment for the production of new electric models were not disclosed, Stellantis’ decision to introduce electric van manufacturing at the Luton facility underscores its confidence in the plant’s capabilities and its long-term viability.

Adapting to EU regulations

With the impending EU ban on combustion-engine cars scheduled for 2035, automotive manufacturers across Europe are strategically positioning themselves to embrace electric mobility. By diversifying its product lineup to include electric vans, Stellantis demonstrates its proactive approach to aligning with evolving regulatory frameworks and consumer preferences.

UK automotive landscape

Stellantis’ announcement comes amid a series of investments in the UK automotive sector, signalling optimism and resilience in the industry. Nissan’s commitment to invest GBP 1.12 billion in its UK plant for electric vehicle production and Tata Group’s plans to establish a GBP 4 billion EV battery plant highlight the UK’s growing significance in the electric vehicle supply chain.

Government support

The UK government welcomes Stellantis’ decision as a positive development for the country’s economy and automotive industry. Industry Minister Nusrat Ghani lauded the move, affirming that it reflects the success of the government’s automotive strategy and signals confidence in the UK’s economic prospects.

Call for subsidies

Amidst a slowdown in electric vehicle sales, industry stakeholders urge the UK government to introduce subsidies to incentivise electric vehicle adoption among consumers and businesses. Stellantis emphasises the importance of government support in stimulating demand and facilitating a smooth transition to electric mobility.

Future prospects

While Stellantis’ decision to produce electric vans in the UK underscores its commitment to sustainability and innovation, the success of this initiative hinges on various factors, including government policies, consumer acceptance, and infrastructure development. As the automotive industry navigates the transition towards electrification, collaborative efforts between industry players and policymakers will be crucial in shaping the future of mobility in the UK.