A gleaming white Vivaro van drove slowly off the production line at Vauxhall's factory in Luton, beeping its horn, while workers cheered and crowded around taking photographs.

Behind it, the production line came to a halt – forever.

The Luton plant began building cars in 1905. It kept operating for the next 120 years, taking time out to build tanks and aircraft engines during World War Two. But on 28 March, that came to an end.

The factory shut down, a victim of cutbacks at Vauxhall's parent company, Stellantis.

Justin Nicholls, a production shift manager, was one of the 1,100 workers there - he had worked at the plant for 38 years. "It was devastating, because it came out of the blue", he says. "It was a complete surprise."

It followed the closure of Honda's car factory in Swindon in 2021, and Ford's engine plant in Bridgend the year before.

Together, they have come to symbolise an apparent long-term decline in the UK motor industry.

In all, just 417,000 new cars and vans were built in the UK in the first six months of 2025, according to the Society of Motor Manufacturers and Traders (SMMT) - the lowest for that period since 1953.

Output for the year is expected to be around 755,000 vehicles — lower even than during the Covid-19 pandemic.

The SMMT's chief executive, Mike Hawes, described the situation as "depressing".

The sector contributes some £22bn a year to the economy, according to the SMMT, and as recently as 2023 automotive manufacturing employed some 198,000 people in the UK.

Andy Palmer, who was previously chief executive of Aston Martin, believes the ecosystem - and the sum it contributes to the economy - can only survive if the industry maintains its current scale.

"There is a critical mass of employment," he explains. "Once you go below that, you see it all fall apart.

"You don't have the university courses, you don't have people coming across from the aero industry, you don't have the pipeline of skilled engineers that allow the luxury firms to exist, and so on."

And the knock-on effect of this could affect regions already facing challenges.

"If we think about parts of the UK that have automotive plants, they're often disadvantaged regions," says David Bailey, professor of business economics at Birmingham Business School.

"Losing these good quality jobs would have a big impact in terms of wages for workers and also a knock-on effect in terms of the multiplier on the local economy."

He is concerned about what has already been lost. "I'd argue that actually we've let too much of this go already. I think once it's gone, it's really gone."

The question is, can the industry recover - or is it too late?

The UK car industry is sprawling. Alongside large factories run by the likes of JLR, Nissan, BMW MINI and Toyota, there is a network of suppliers and high-tech specialist engineering firms, along with a number of smaller, luxury car firms, such as Aston Martin, Bentley, Rolls-Royce and McLaren, plus bus and truck manufacturers.

In 2016, the UK produced 1.82m new vehicles – more than at any point since 1999. Yet even at that point, storm clouds were already gathering. And the industry has suffered further over the past decade.

Factory closures have had an........

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