Luton is reeling from the news that Vauxhall is set to sever its long-held link with the town – after parent company Stellantis announced plans to shut the car maker’s factory after 120 years.

Stellantis, which also controls the Fiat, Peugeot and Citroen brands, has blamed government EV sales targets for the decision to shutter the factory, which first opened in 1905 and has been making vans for almost a century.

The Luton factory had been set for a retooling to make the electric version of the Vivaro van before the plug was pulled on Tuesday afternoon – to the shock of workers, some of whom have worked at the plant for decades.

Factory workers were handed notices yesterday to inform them of the plan to consult on the plan to close Luton, while also investing £50million in the Ellesmere Port facility in Cheshire so the vans can be made there, 140 miles away.

More than 1,100 jobs are at risk – though Stellantis says ‘hundreds’ of roles will be transferred to the other factory, with relocation packages on offer.

The leader of Luton Council, Hazel Sim called the news a ‘devastating blow’ for the town.

Some, including one forklift driver, had to learn via messages on WhatsApp because they weren’t on shift – a move the worker described as ‘pretty rubbish’.

‘There’s a lot of people there, a lot of people coming up to retirement and youngsters – it’s going to hit the town hard,’ said the man, who spoke to the BBC anonymously.

‘As there’s a lot of people that depend on Vauxhall to supply parts, there’s going to be a big knock-on effect.

‘It’s going to hit the town hard. It will be huge.’

Cllr Hazel Simmons MBE, leader of Luton Council, said: ‘Today’s news that Vauxhall plans to close its van making factory in Luton is a devastating blow for our town.

‘First and foremost, our thoughts are with the employees and their families who have received this deeply distressing news.

‘We are ready to support in any way we can and will be meeting with the plant’s management and Trade Unions to discuss practical help we can give at this time.

‘When other firms have closed locally we have an excellent track record supporting employees to find alternative work utilising their transferrable skills and are fully committed to doing the same with our local Vauxhall community where a transfer to Ellesmere Port is not feasible for them.

‘We are also seeking clarity from the government on what support they may also be able to provide for employees at this time.

‘Vauxhall has been an integral part of Luton’s heritage, and this is a sad day for our town, but we are a strong and resilient town and always bounce back. We will do exactly the same following today’s news.’

Carlos Tavares, CEO of Stellantis, had threatened to scale back the firm’s presence in the UK in the summer in response to the government’s zero emission vehicle (ZEV) mandate scheme.

Ford is cutting 800 jobs in the UK in the next few years, while Nissan has warned of irreparable damage to Britain’s car manufacturing industry if the scheme remains as it is.

The ZEV mandate requires all car firms to ensure 22 per cent of cars they sell this year are purely electric, or else face punitive fines of up to £18,000 per non-compliant vehicle sold over the threshold.

Last night, business secretary Jonathan Reynolds said the government had ‘heard’ car firms’ pleas for leniency as it looked apparent many would not hit the goal.

In a speech to industry leaders in central London, Mr Reynolds admitted he was ‘profoundly concerned’ by how the EV sales mandate – a Rishi Sunak policy – was working in practice.

He said the Vauxhall closure ‘only confirms what we knew about the scale of the challenges’ facing the industry.

The consultation will map out ‘a better way forward’ to achieve the broader goal of phasing out new petrol and diesel vehicles by 2030, he insisted.

He said: ‘I’m going to be frank with you – I don’t believe the policies that we have inherited, and I mean specifically in relation to zero-emission vehicles, are operating today in a way anyone intended them to.’

As of October, 18.1 per cent of cars sold in Britain this year were electric – miles behind the 22 per cent target.

Unite the Union, which had earlier this month urged Stellantis to commit to the future of the Luton plant, called the move a ‘complete slap in the face’.

‘The proposal that has been tabled today has been a complete slap in face for our members in Luton, where Vauxhall vehicles have been manufactured for 120 years,’ a spokesperson said last night.

‘Whatever the positive benefits this plan may have for Ellesmere Port, that is not acceptable.

‘We stand ready to support our members in doing whatever we can to ensure that historical vehicle manufacturing is maintained in Luton and we call on the government to do the same.’

Stellantis has branded its plan a ‘proposal’ – but motoring industry insiders believe the move is practically a done deal.

It says any move to Cheshire would come with support for workers who wish to remain in Luton – including retraining and help to find a new job.

The firm declined MailOnline’s request for an interview last night.

Society of Motor Manufacturers and Traders (SMMT) boss Mike Hawes has warned that the sales threshold could cost the industry nearly £6billion this year alone – £2bn of which will be ZEV mandate fines alone.

Speaking at the trade body’s annual dinner last night, Mr Hawes told an audience: ‘Jobs are on the line.’