Vauxhall has announced a £50 million investment in its British facility while cautioning that its outlook remains “currently unsustainable.”

The carmaker is strengthening operations at its location in Ellesmere Port, Cheshire.

An upcoming production line will manufacture electric Vauxhall Vivaros models alongside other midsize zero-emission vans starting the following year.

However, parent company Stellantis has warned that the facility will not achieve commercial viability unless government officials revise existing electric vehicle regulations.

The Ellesmere Port facility previously manufactured the Vauxhall Astra and currently produces 14,500 compact electric vans annually, according to The Times.

Emanuele Cappellano, president of Stellantis’s European operations, has stated that requirements under the zero-emission vehicle (ZEV) mandate require modification.

He stated: “Operating in the UK is currently unsustainable under the regulations and there is an urgency for that to be addressed.”

Currently, the regulation requires that 24% of light commercial vehicle manufacturers’ sales be electric.

Non-compliant vans incur an £18,000 penalty per vehicle sold.

Furthermore, the goal mandates that 70% of new vans sold in Britain be electric by 2030.

Stellantis has contended that the regulation forces the company to either manufacture an impractical number of zero-emission commercial vehicles or restrict diesel van sales to avoid fines.

Future profitability at the facility, which builds zero-emission variants of the Vauxhall Combo, Citroën Berlingo, Peugeot Partner, and Fiat Doblo, remains unclear.

The manufacturing site, employing 950 workers, also produced 30,000 bodyshells last year for shipment to a Stellantis facility in Algeria.

Stellantis shut down Vauxhall’s Luton plant in 2025 to consolidate electric van manufacturing at Ellesmere Port.

A company representative commented at the time: “Our employees always remain our priority, and we continue to act responsibly towards our colleagues in Luton.”

Unite’s general secretary Sharon Graham responded: “Stellantis’s betrayal of its Luton workforce, who have delivered every target asked of them, is a total disgrace.”

Although the British electric van market is expanding, industry data indicates that electric vehicles represent less than 12% of van sales this year.

The Times reports that business secretary Peter Kyle supports easing the mandate regarding annual volume targets and implementation timeline.

However, this position reportedly conflicts with Ed Miliband’s Department for Energy Security and Net Zero and the Treasury.