The BBC understands that Vauxhall owners may announce plans to build an electric van at the Ellesmere Port plant in Cheshire as early as next week.
An investment that is said to be worth hundreds of millions of pounds will protect the work of about 1,000 factories.
The future of the factory was questionable after Vauxhall’s parent company, Stellantis, abandoned plans to build a new Astra model there.
Nissan announced this week that it will build a new electric vehicle at its Sunderland plant.
Stellantis has been discussing the site’s options with the UK government for several months and is known to seek financial support for its plans.
Van sales are skyrocketing during pandemics due to growth in home delivery sales.
Making a van may not be particularly attractive, but for now it makes a lot of sense.
The impact of the pandemic had a major impact on car sales, but the boom in home delivery has led to a surge in demand for light commercial vehicles. Fleet operators are increasingly looking at low-emission options because of their tax benefits.
For Carlos Tavares, Stellantis’ practical and candid CEO, it offers a useful compromise. He is keenly aware of the UK government’s plan to outlaw the sale of new petrol and diesel vehicles from 2030-accusing them of destroying his company’s business model in the UK.
Currently, there is a new business model. Mr. Tavares had previously revealed that future production in the UK will depend on the support that the government can provide, which could be part of the support from taxpayers.
Stellantis is the fifth largest car manufacturer in the world and also owns Peugeot, Fiat and Chrysler.
Since the UK and other European countries announced a ban on the sale of new gasoline and diesel vehicles in 2030, efforts to manufacture electric vehicles have expanded.
Nissan announced on Thursday that it would significantly expand its electric vehicle production at its Thunderland car plant, creating 1,650 new jobs.
Japanese automakers are building a new generation of all-electric models on their site as part of a £ 100 billion investment to support thousands of jobs in the supply chain.
Nissan’s partner, Envision AESC, will also build a battery plant.