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British motor industry gets £100 million boost from France

06 April 2018

The UK motor industry’s fears over its post-Brexit future have diminished in the wake of an announcement by Vauxhall’s French parent company PSA that it is to make an investment of at least £100 million in its Luton plant.

The decision, which secures 1,400 jobs at the plant until at least 2030, will see the next generation of Vivaro vans built in Luton, boosting the factory’s output from about 70,000 vehicles a year to 100,000.

PSA said it had decided to go ahead with the investment, which includes £9 million of pump-priming cash from the government, “despite Brexit uncertainties”.

Business Secretary Greg Clark said the decision represented a vote of confidence in the UK’s automotive sector, adding: “This investment in upgrading the production platform will safeguard and grow jobs, ensuring the future of the Luton plant well into the next decade and help ensure the plant is well positioned for future Vauxhall models to be made in the UK.”

Carlos Tavares, chairman of PSA, which also owns Peugeot and Citroen brands, said: “Performance is the trigger for sustainability and I would like to thank all stakeholders involved and underline the open mind-set of our union partners, as well as that of the UK government.

“This is a major milestone for the future of the Luton plant and a key enabler to serve our ambitions in the commercial vehicle market.”

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