Berliner Boersenzeitung - UK town motors on as historic Vauxhall plant to shut

From the outside it appeared to be business as usual at the ageing factory that has churned out vehicles for 120 years, including for the British army during two World Wars.

Inside the large facility however, multinational owner Stellantis plans to switch off machines for a final time in the coming days, blaming the move on rising costs linked to Brexit and a sector-wide transition to electric vehicle (EV) production.

Some 1,100 jobs are set to be lost at the plant north of London currently making electric Vauxhall and Peugeot vans, dealing a "devastating blow" to the town according to Luton Borough Council which estimates a similar number of layoffs across the supply chain.

- End of an era -

However for some staff seeing out their final few days at the plant -- unions said production could end Friday -- there are signs of hope.

"There's a jobs fair here next week so I'll probably go to that," Lynette Edwards, 32, told AFP at a shift changeover.

"I've worked here for six years fitting van parts," said Edwards, dressed in black workshop attire, adding that there were employment opportunities at the council and local transport companies.

She was joined outside the factory, which sits in the shadow of London Luton Airport, by workers of all ages, some in a more fortunate position than others.

"I've worked here 37 years, my family worked here, my dad, my sister, my brother, uncles, aunts, they've all been through here," said a grey-haired panel loader who did not wish to share his name.

"To be honest with you, it fell nicely for me," he said of the closure, adding that were the plant to stay open, he would not be retiring in December with a payout.

"But for people in there, the youngsters, not so good," he said, looking back at the plant emblazoned with Vauxhall's griffin logo.

"They've all got to be looking for work. There are people with mortgages, children," said the 62-year-old, followed by a sigh.

According to the union Unite, only a "handful" of workers have taken up an offer from Stellantis -- whose brands include Chrysler, Fiat, Jeep and Opel -- to relocate to the car giant's other UK plant in Ellesmere Port on England's northwest coast.

"If you're someone who lives in Luton, you don't really want to be relocated" some 175 miles (280 kilometres) away, Lewis Norton, Unite organiser for the automotive sector, told AFP.

He noted that the median age for UK car plant workers was around 45 years old.

"These are predominantly people who are tied to a town they live in. That's why the jobs are usually relatively parochial."

- Universal Studios? -

Stellantis has said it is investing £50 million (around $65 million) in the Ellesmere site as it looks to consolidate its EV production in Britain.

The company argues that UK government rules imposed to accelerate EV transition partly drove its announcement in November to shut the Luton factory.

At its peak in the 1960s, the plant employed about 35,000 under Vauxhall's longest-serving owner General Motors, which sold the brand to Stellantis's French forerunner PSA Group in 2017.

"It's a really difficult time for those that are facing redundancy from the closure," said Justin Richardson, chief executive at Bedfordshire Chamber of Commerce, the county that is home to Luton.

"But there's a lot of opportunity," he insisted, pointing to a looming expansion of the airport and a new stadium for the local football club, Luton Town, relegated from the Premier League last season.

US entertainment group Universal Studios is meanwhile looking to build a theme park in Bedfordshire, its first in Europe, which could create thousands of jobs.

(S.G.Stein--BBZ)