Stellantis mulls ending production in UK unless it boosts EV demand


Stellantis’ UK chief has warned that the car maker could cease production in the country should the government fail to support electric vehicle (EV) adoption.

Speaking at a Society of Motor Manufactuers and Traders (SMMT) conference in London, Stellantis UK head Maria Grazia Davino said the business will likely decide on UK production within the next year.

The UK’s ZEV mandate aims to accelerate the transition from petrol and diesel cars to electric models by 2035, with EV sales targets progressively increasing. EV car sales targets for this year have been set at 22% rising to 28% next year to reach 80% by 2030. 

The UK government has mandated that these minimum percentage of manufacturers’ UK sales are fully electric, failing which they will face fines of £15,000 for each non-compliant vehicle sold.

“In the UK, there will certainly be consequences due to these mandates,” said Davino. “Stellantis UK will not halt its operations, but UK production could come to a stop.”

Stellantis owns brands such as Peugeot, Fiat, Vauxhall, and Jeep and has previously said it may move to restrict the import of ICE models to the UK to meet the 22% EV sales target.

Earlier this year, Stellantic chief executive Carlos Tavares branded Britain’s EV policy as “terrible”, warning that it could ultimately lead to carmakers facing bankruptcy.

Tavares said the UK’s quota system had been set at levels “double the natural demand of the market”, forcing carmakers to sell vehicles at a loss in order to avoid heavy fines, jeopardising financial stability.

Tavares then warned: “To survive, companies have to stay in the black. I will not sell cars at a loss”, adding that the net zero measures could mean it ceases offering some models and even scale back its presence in Britain.

Currently, Stellantis produces electric vans at its Ellesmere Port plant in northwest England and plans extending production of them at its Luton plant by 2025.

 



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