Vauxhall will close its Luton plant in April, 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 jobs to the group’s Vauxhall site in Ellesmere Port.
It is now in consultation with unions and employees over the proposals, which will also see it invest £50m into the Ellesmere Port factory.
The company said it would offer “relocation support” and “an attractive package” to sacked employees who want to transfer to Ellesmere Port in the North West of England.
Pressures have been on UK car makers to meet the government’s electric car mandate with talks on the 2030 deadline taking place between government and industry.
Financial penalties are currently levied against manufacturers if zero-emission vehicles make up less than 22% of all sales. This will rise to 80% of all sales by 2030 and 100% by 2035.
This breaking news story is being updated and more details will be published shortly.
Please refresh the page for the fullest version.
You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow us on WhatsApp and subscribe to our YouTube channel to keep up with the latest news.