Vauxhall-owner Stellantis threatens British exit in EV row

Vauxhall, Peugeot, and Citroën owner Stellantis has warned that it may halt car manufacturing in the UK, amid electrification pressures.

Maria Grazia Davino, UK managing director for Stellantis, told an industry conference on Tuesday that the carmaker will decide on the viability of its Luton and Ellesmere Port plants within a year.

The problem, according to Stellantis, is that there’s insufficient demand for EVs for it to meet stringent Government-mandated sales quotas – which will require a specified percentage of all new car sales to be EVs.

Davino called on the British government to do more to support and incentivize EV adoption in the UK, proposing reduced VAT on EV and new government support for improving the country’s charging infrastructure.

Stellantis has invested substantially in UK facilities to produce electric vehicles, with the Ellesmere Port plant going ‘electric-only’ in 2023, whilst the plant in Luton is supposed to begin producing electric vans in 2025.

But, the company would face government fines if it fails to meet mandated EV sales targets, regardless of the market demand.

Stellantis chief executive Carlos Tavares has previously described the UK policy as being too aggressive compared to the European Union, where a mix of hybrids and EVs can be used to meet targets.

Just over a week before a general election, in which the Labour party is expected to win, the carmaker has called for government action to prevent potential job losses and ensure the continued operation of its UK plants.