Good news for the workers at the Luton Vauxhall factory. After much wrangling a deal has been reached which will see the plant produce the latest incarnation of the popular Vivaro van.
The Luton factory is Britain's largest van plant and it employees over 1,500 staff. The new deal is a joint venture between the General Motors owned Opel/Vauxhall group and Renault and will secure the future of the plant until beyond 2020.
It is planned that the plant will produce 62,000 vans a year. The Renault Traffic variant of the Vivaro that is currently produced in Luton will have production shifted to France in 2013. This will be at Renaults plant in Sandouville.
The news of the deal will come as a relief to the staff of the plant. There had been fears that it would be shut down. The Luton plant is the last large scale producer of vans in the UK. Although manufacturing is far from being in the forefront when it comes to financial investments at the moment perhaps Britain will be able to emulate the success that Germany has seen in reviving its economy by focusing on the sector.
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