Following Stellantis’s decision to cease operations at its Luton factory by the end of March, a significant investment has secured the future of the site and mitigated potential job losses.
Property developer Goodman has acquired the sprawling Vauxhall plant, committing £400 million to transform it into a modern commercial and industrial park. This marks a substantial private sector injection into Luton’s economy in the wake of the factory’s final production run – a Vauxhall Vivaro that rolled off the line at 12:18 pm on Friday, March 28th, concluding over a century (120 years) of automotive manufacturing history beginning in 1905.
The project aims to attract a diverse range of businesses, focusing on:
- Advanced Logistics
- Manufacturing
- Engineering
- Digital Infrastructure
Goodman anticipates that the completed development, slated for 2028, will generate more than 1,700 new jobs. The company has emphasized its commitment to collaboration, stating they will work closely with Luton Borough Council and the local community “to bring forward development proposals for a mix of employment uses.”
While Luton Borough Council previously submitted a competitive bid to purchase the land—ultimately unsuccessful against Stellantis’s decision—the current redevelopment plans are designed to offset the loss of approximately 1,100 jobs by fostering new economic opportunities.
As Jason Harris, Goodman’s commercial director, explained: “Our vision is to deliver a transformational regeneration scheme. This will attract new businesses to Luton and create a mix of jobs from a range of sectors.” He further acknowledged “the social and economic significance of the site,” pledging close cooperation with local stakeholders.
Goodman has joined the council-led Luton Taskforce on Economic Growth, aiming to stimulate both direct employment and indirect supply chain opportunities.
James Taylor, Labour councillor and portfolio holder for regeneration and inclusive growth at Luton Borough Council, highlighted the site’s importance: “We are keen to see a mix of commercial and industrial uses at the site, create quality new jobs for local people and bring in vital investment for Luton which will help drive Luton’s 2040 vision for a town where everyone can thrive.”
Stellantis confirmed that production has ceased with machinery and processes being transferred to Ellesmere Port.
Construction is anticipated to commence in 2027, with the expectation of welcoming new businesses to the revitalized site by 2028. The redevelopment remains contingent upon securing planning permission.
