Stellantis to shut its van factory in Luton, England

European auto-maker Stellantis said on Tuesday it planned to shut its Vauxhall van factory in Luton, southern England, putting more than 1,000 jobs at risk.

The company, which also owns the Peugeot, Citroën, Chrysler and Fiat brands, said 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 Milan-listed company said it planned to relocate "hundreds of jobs" from Luton to Ellesmere Port, and it had started a consultation with employees and unions.

The British government said: "While it's encouraging to see Stellantis investing in the future of its Ellesmere Port plant, we know this will be a concerning time for the families of employees at Luton who may be affected."

The company did not state how many jobs would be impacted.

In June Stellantis 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 UK production.