UK-based vehicle manufacturer and a subsidiary of General Motors, Vauxhall Motors is set to start production of its new Vivaro van at its Luton plant with an investment of £185m over the next ten years.
Of the total investment, the company will spend about £76m in manufacturing facilities and £90m in vendor tooling and special equipment at the Luton facility in the UK.
The investment would also create about 1,200 jobs at the van manufacturing plant over a period of ten years.
Vauxhall chairman and managing director Tim Tozer said the all-new Vivaro van is of critical importance to the company and its manufacturing facility in Luton.
"Our customers will be delighted with the new Luton-built Vivaro," Tozer added.
"It offers the comfort and design of a passenger car but with class-leading practicality, improved cargo dimensions and excellent payload capability."
During the period, the company's supplier firms are expected to benefit from £600m of new business that includes 40% local sourcing of parts in the UK and a 60% increase on the outgoing model.
Vauxhall Purchasing and Logistics director Mark Poulton said the booming British automotive industry is now big enough to encourage a much larger supply base.
"Local content benefits UK PLC as well as making sound business sense, giving added flexibility and reducing our carbon footprint," Poulton added.
