A funding gap of just £40m risks scuppering attempts to ensure Stellantis’ Vauxhall factory at Ellesmere Port in Cheshire remains open.
The car giant has been mulling whether to reinvest in the plant, where it makes the Astra vehicle, due to the government’s decision to ban the sale of new petrol and diesel cars from 2030.
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Executives have been in frequent talks with officials, including business secretary
A deal now hinges on a gap of around £40m between what the government has offered and what
“Stellantis is saying, ‘it’s £Xm cheaper to do it elsewhere’ and want that gap closed. The difference is now less than £40m”, a source said.
The fate of the Ellesmere Port site has long been in doubt, with the current model of the Astra close to being retired.
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Speaking at an event to mark the birth of the new firm in January, chief executive
Since then, the fate of the 1,000 staff who run the plant has been up in the air, as well as the 6,000 other jobs supported by the factory’s supply chain.
Kwarteng has said that the government is “absolutely committed” to securing the future of the plant.
Read more: Ministers ‘absolutely committed’ to securing future of Vauxhall’s Ellesmere Port plant
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