Stellantis threatened to stop production in the UK because the country set electric car sales targets too high
Stellantis NV will stop making cars in the UK unless the government relaxes electric vehicle sales targets, just months after retooling one of its UK factories to produce only battery-powered vans.
Maria Grazia Davino, the company’s regional chief executive, told reporters on Tuesday that the target of selling zero-emission vehicles is unsustainable. The comments come as the UK prepares to hold a general election on July 4 with both the incumbent Conservatives as well as Labor determined to stick to current electricity sales targets. in.
The UK has introduced regulations requiring 22% of each manufacturer’s new car sales to be emission-free this year, rising to 80% by 2030. For vans, 70% of sales New cars at that time had to be electric.
With demand for electric vehicles slowing, Davino said Stellantis will be forced to reduce prices to meet targets at the risk of fines of up to 15,000 pounds ($19,022) per vehicle for those who fail to comply. Labor has pledged to maintain this mandate if it wins next week’s general election.
Stellantis produces small electric vans across Vauxhall, Citroën, Peugeot, Opel and Fiat at the site in Ellesmere Port, following a £100 million investment to convert the plant into an electric-only factory last year. The company also produces medium-sized trucks in Luton near London.
“We have made major investments both in Ellesmere Port, Luton and more in the future,” Davino said at the SMMT International Automotive Summit in London. “But if this market becomes hostile to us, we will evaluate production elsewhere.”
This is not the first time for Stellantis has threatened to leave the UK. Last year, the company warned it would close factories unless potential tariffs on electric trucks exported to the European Union were renegotiated. A deal between the EU and UK was finally signed ahead of schedule.
Stellantis is warning about targeting UK electric vehicle sales as consumer demand has slowed in recent months amid persistently high prices and patchy charging infrastructure. Davino said increased targets to 2030 “could be very damaging”.
“If demand doesn’t follow the offer, then we will be forced to make decisions – because we manage profit and loss, we manage operational decisions – which are affecting affecting the UK”.
Asked how long Stellantis, the UK’s best-selling van maker, could continue to operate without a change to the directive, she said: “Less than a year.”
Stellantis sold almost 216,000 new cars in the UK last year, accounting for around 11% of the total market, including more than 100,000 Vauxhall-branded cars.
