Vauxhall Luton van plant will build the next generation Vivaro from next year, and probably some Peugeot and Citroen models which will use the same platform in the group.
The news today secures about 1,400 jobs beyond 2030 and represents up to £170m investment in the plant said the Unite union, including about £9M from the Government. It is also expected to be good news for the UK supply chain which is going to be asked to make more components for the models to cut down on imported parts tariffs post Brexit.
Last year, the plant assembled 70,000 Vivaro models but under the parent PSA Group plans it will maximise facilities and build other models for UK or export markets, possibly taking it to 100,000 units annually.
The decision has been made despite uncertainties over the future of UK automotive manufacturing post Brexit and now eyes will turn on the future investment for Vauxhall Ellesmere Port Astra plant, which will have to compete with PSA plants in Europe for the next in the series, also based on a Peugeot Citroen platform, but which could also see the French marques made in the North West where it employs 1,300 people.