Stellantis NV plans to close a van factory in Luton, England, in a rebuke of the government mandating more electric vehicle sales.

European auto-maker Stellantis said on Tuesday it planned to shut its Vauxhall van factory in Luton, southern England, putting more than 1,000 jobs at risk.

Stellantis plans to transfer operations from its Luton plant near London to its Ellesmere Port site in northwest England, putting more than 1,100 jobs at risk as the automaker grapples with a slow electric-vehicle market and fierce competition from Chinese rivals.

Stellantis plans to close its Luton van factory, shifting production to Ellesmere Port amidst UK’s stringent zero-emission targets, sparking industry concern.

Stellantis plans to close its Vauxhall van factory in Luton, risking over 1,000 jobs. The company will consolidate UK production at the Ellesmere Port facility, investing £50 million in its electric vehicle hub.

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world Vauxhall's owner Stellantis said it is planning to shut the Luton site next April.

Stellantis has announced its intention to close their Luton plant in the United Kingdom. The facility was slated to begin building mid-size electric vans next spring, but the automaker wants to consolidate production at Ellesmere Port.