PSA Group intends to increase its manufacturing capacity in the compact vans segment and will begin supplying its customers from the Luton plant by 2019 in addition to the existing Hordain facility in France.
The investment in Luton is driven through a performance plan negotiated between the Unite Trade Union and the Luton plant (UK), combined with its recognised know-how in the manufacture of light commercial vehicles (LCV) and the flexibility of its existing paint shop. With this initiative, the EMP2 platform for LCV will be localised by mid-2019, as part of the convergence on PSA Group technology.
PSA says the performance plan has been facilitated by both the responsible social dialogue with the Unite union guaranteeing production flexibility and the support of the United Kingdom Government and Luton Borough Council, despite Brexit uncertainties.
In 2017, the plant produced 60,000 Opel/Vauxhall Vivaros. The investment aims at increasing the plant’s production capacity to 100,000 vehicles per year based on PSA Group’s EMP2 platform.
“Performance is the trigger for sustainability and I would like to thank all stakeholders involved and underline the open mindset 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, guaranteeing customers the best offering in this segment” said Carlos Tavares, Chairman of the managing Board PSA Group
“This excellent news for Luton is also a clear demonstration that our PACE! Plan is being executed across all European countries. It is also a clear recognition of the skilled people who have customer satisfaction at the core of their priorities. As we have often stated, we have our future in our own hands and we need to unleash the full potential of the employees” said Michael Lohscheller, CEO of Opel/Vauxhall.