Stellantis could add electric van production at its factory in Ellesmere Port, England, securing the plant's future.
The plant currently builds the Opel/Vauxhall Astra. Its future was put in doubt after Stellantis declined to confirm that it will produce the new-generation Astra, due to be unveiled later this year.
The plant's future has been secured, a source familiar with the matter told Automotive News Europe, without confirming which model will be produced.
The plant could be allocated electric van production, although this has not been confirmed, the source said.
An announcement on the plant's continued future is expected in the next couple of weeks, according to the source.
The factory's future has been the subject of speculation since Stellantis decided to build the new Astra at Opel's home factory in Ruesselsheim, Germany,
Britain's exit from the European Union's Single Market also added to fears for its future.
Automakers are accelerating the rollout of EVs and the UK is among countries that have set target dates to ban the sale of combustion engine cars and vans.
Recent events back up the fresh information that the plant's future has been secured.
The BBC reported on Monday that talks between the British government and Stellantis to secure production of electric vehicles at Ellesmere Port plant are "going positively" and that an announcement is expected in the next few weeks.
Workers at the plant last week agreed to new working conditions, paving the way for the production of a new model. Meanwhile Vauxhall is recruiting for a site civil engineer to oversee "construction works to buildings" for a two-year fixed term. The construction work is understood to involve reducing the size of the factory site, allowing Stellantis to sell off unused land.
The Ellesmere Port announcement could be made on July 8 when Tavares will outline a new electrification strategy for Stellantis.
Electric van production would link Ellesmere Port with Stellantis's van production in Luton, England, where it builds midsize vans for Vauxhall/Opel, Citroen and Peugeot. Currently Luton makes only diesel models, with electric versions of the midsize vans such as the Vauxhall Vivaro and Citroen Jumpy built in France.
Production in Luton is running at full capacity after Stellantis added a third shift in May to meet strong demand, meaning Ellesmere Port could be given the job of building electric versions for UK consumption.
UK utility firm British Gas ordered 1,000 electric Vivaro-e vans from Vauxhall in July, with further orders expected.
The future of Ellesmere Port has become politically sensitive with UK Prime Minister Boris Johnson anxious to ensure that the factory does not become the first automotive facility to close after the country left the EU.
Honda will close its assembly plant in Swindon, while last year Ford shuttered its engine plant in Bridgend, Wales. Both moves were announced before Brexit was completed.