Vauxhall Taps Venerable U.K. Plant for Vivaro Van

General Motors subsidiary Vauxhall launches its all-new Vivaro, with the U.K.’s last van manufacturing plant securing a 10-year contract and a £185 million ($314.8 million) investment.

The 109-year-old Luton plant, 30 miles (48 km) north of London, beat world-class competition from across Europe to win the contract to build the van.

Rival Ford shut its Transit factory in Southampton last year making the Luton facility the sole flag-bearer for U.K. van manufacturing. The plant has built more than 8 million vehicles since 1905.

Luton has produced almost 1 million Vivaro vans since 2001, including 44,000 in 2013. The factory is a major exporter with 52% of output destined for European markets.

Vauxhall says U.K. suppliers will benefit from £600 million ($1.02 billion) in new business over the life of the latest Vivaro, with 40% of its content sourced locally.

Vauxhall Purchasing and Logistics Director Mark Poulton says it represents an increase of 60% on the outgoing model and means other U.K. businesses will benefit from the investment and job security that come from Vauxhall winning the contract for the van.

“The booming British automotive industry is now big enough to encourage a much larger supply base,” he says.

The new Vivaro was designed by a team led by Malcolm Ward, Vauxhall/Opel’s design director. The Luton-born Ward follows in the footsteps of his father and grandfather, who both worked at Vauxhall.

“The all-new Vivaro van is of critical importance to Vauxhall and its manufacturing facility in Luton,” Vauxhall Chairman and Managing Director Tim Tozer says.