Stellantis threatened to take electric vehicle production out of the United Kingdom. The legacy automaker claims that the UK’s EV sales target for zero-emission vehicles is too high.
The UK launched a new zero-emission vehicle mandate, requiring every automaker to comply. Under the mandate, 22% of new car sales must be zero-emission vehicles by the end of 2024. By 2030, 80% of new passenger car sales must be zero-emission vehicles, and 70% of new van sales must be electric.
Stellantis’ managing director for the UK, Maria Grazia Davino, commented that the country’s zero-emission vehicle sales targets are unsustainable.
“We have undertaken big investments both in Ellesmere Port and in Luton and more to come. But if this market becomes hostile for us we will enter an evaluation of producing elsewhere,” said Davino.
Stellantis’ concerns stem from slowing EV demand worldwide. Davino pointed out that Stellantis would be forced to offer significant discounts on its vehicles to avoid fines of up to $19,022 per vehicle for not complying with the mandate.
“If demand does not follow the offer, then we will be forced to take decisions because we manage profit and loss, we manage operational decisions that are impacting the UK,” she explained.
The United Kingdom’s general elections will take place on July 4. The incumbent Conservative and Labour Parties have shown signs of supporting the zero-emission vehicle mandate.
Stellantis is especially concerned about the UK’s new car sales rules affecting its electrified van business. The legacy automaker produces small electric vans across a few brands, including Vauxhall, Citroën, Peugeot, Opel, and Fiat, in Ellesmere Port and Luton.
In 2023, Stellantis’ new car sales accounted for 11% of the total UK market. It sold nearly 216,000 new cars in the UK last year. The Vauxhall brand made up over 100,000 of Stellantis’ new car sales.
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