NAA Update: Stellantis Luton plant closure, Ellesmere Port plant investment; Ford’s Halewood plant starts EV drive unit production
As the festive season approaches, there are some ups and downs: the UK automotive industry is waiting for the government to review the flexibilities of the zero emission vehicle mandate; in the meantime, Stellantis has announced plans to close its Luton plant, but to invest in EV production at Ellesmere Port, and Ford starts EV drive unit production at Halewood.
Welcome to this month’s newsletter and I hope you are all keeping well.
It was disappointing that during the recent budget, the new Chancellor didn’t take the opportunity to offer any support for the adoption of electric vehicles, particularly for the private motorist.
Subsequently, our sector has called for urgent market intervention as weak demand and unsustainable business costs will undermine the UK automotive industry, with car manufacturers facing an almost £6 billion bill to meet the Zero Emission Vehicle (ZEV) Mandate targets in its first year (22% for cars and 10% for vans respectively), new analysis shows. The latest industry outlook anticipates 116,000 fewer new electric cars and vans will be registered this year compared with expectations when mandate was announced.
Business Secretary Jonathan Reynolds confirmed that a consultation would be launched in the coming weeks at the Society of Motor Manufacturers and Traders’ annual dinner last month. However, he stressed that the Government is still committed to the 2030 phase-out date for petrol and diesel vehicles, but said it is clear there is a need for more support to make the transition to electric a success.
The consultation is not expected to mean changes in the ZEV mandate percentages, but is likely to mean changes on the options for car manufacturers in terms of how they can avoid being fined for missing targets.
The Government had previously ruled out weakening electric vehicle (EV) production targets for car and van makers despite mounting pressure from the industry.
There was also bittersweet news last month following the news that Vauxhall will close its 120-year-old Luton plant in April 2025, the parent company Stellantis announced. More than 1,100 jobs at the van-making factory are at risk, but Stellantis said it is hoping to transfer “hundreds” of Luton jobs to the group’s Vauxhall site in Ellesmere Port, Cheshire. It is now in consultation with unions and employees over the proposals, which will also see it invest £50m into the Ellesmere Port factory.
Also, Ford’s Halewood plant has started production of its new eDrive electric power units which will feature in the electric versions of the UK’s best-selling vehicles, the Transit Custom and the Puma – read more in the newsletter story below.
Moving on to the membership side, we welcome five new members this month:
Kammac – Established in 1982, Kammac is a reliable third-party logistics provider with 14 sites spread across the United Kingdom.
Konduit – Specialists in developing UK trade and investment opportunities for overseas companies and assisting UK companies in European markets.
Oil Recoveries – A family-run hazardous waste management company, specialising in the safe collection, transport, disposal, reuse and refining of liquid waste, particularly oil and fuel. Their in-house processing and refinery sites can turn applicable fuels and oils back into a base oil and other reusable products to supply back into the market.
Pro2 Automotive – A unique OEM supplier that offers a range of services, from consultancy and event management, to driver training and development engineering.
Rock Chemicals T/A Rock Oil – A family-owned Warrington-based manufacturer and reseller of fuels, lubricants and greases.
We will hear more from our new members in the coming weeks.
We’ve been busy elsewhere, working on some exciting collaborations with some of our university member organisations.
Firstly, working in conjunction with the University of Liverpool, join us to start a new chapter for innovation in the Liverpool City Region. Novel is turning the page on the way we approach business. It’s a radical new programme for small and medium-sized businesses based in the Liverpool City Region, designed to transform the capabilities and ambitions of the city region to grow through innovation. If you’re interested to learn more, register your expression of interest here: applynow@itsnovel.org
Secondly, the Sustainable Futures Programme is an exciting opportunity for small and medium-sized enterprises (SMEs) in the automotive sector to take proactive steps towards decarbonisation, delivered by the University of Salford Centre for Sustainable Innovation in collaboration with Siemens and NAA. If you’re interested in participating, you can register your expression of interest here: https://forms.office.com/e/zE7EAbrymN
Elsewhere, we have been busy supporting the Automotive Council’s Skills Working Group with the development of the Automotive Upskilling Platform, which is designed to help employers, training providers and intermediaries to find short courses, and review or create new quality assured courses on vehicle electrification technologies. To find out more about the platform and to offer user feedback, please use the link here.
Finally, I would like to pass on my best wishes to you and your families for Christmas and New Year.
Paul Jones
NAA CEO
