A gleaming white Vivaro van rolled slowly off the production line at Vauxhall’s Luton factory, horn beeping as workers cheered and snapped photographs. Moments later, the production line stopped for good.
The Luton plant, which began building cars in 1905 and even produced tanks and aircraft engines during World War Two, closed its doors on 28 March after 120 years of operation. The shutdown was part of cost-cutting measures by Vauxhall’s parent company, Stellantis.
For Justin Nicholls, a production shift manager with 38 years at the plant, the news was devastating. “It was a complete surprise,” he said.
The closure follows other major blows to the UK car industry, including Honda’s factory in Swindon shutting in 2021 and Ford’s engine plant in Bridgend closing in 2020.
These closures reflect a worrying long-term decline in UK automotive manufacturing. According to the Society of Motor Manufacturers and Traders (SMMT), just 417,000 new cars and vans were built in the UK in the first half of 2025 the lowest figure for that period since 1953. Annual production is expected to reach only 755,000 vehicles, even lower than during the Covid-19 pandemic.
SMMT chief executive Mike Hawes described the situation as “depressing.” The industry contributes about £22bn annually to the economy and employed nearly 198,000 people as recently as 2023.
Andy Palmer, former Aston Martin chief executive, warns that this ecosystem and the economic value it brings can only survive if the industry maintains its scale.
