Stern warning over EV production from Stellantis chief

Stellantis has warned it could stop producing vehicles in the UK within a year if the Government doesn’t take action to stimulate demand for electric vehicles (EVs).

Speaking at a Society of Motor Manufacturers and Traders (SMMT) conference in London, Stellantis UK head Maria Grazia Davino said the business will evaluate alternative locations for production if the UK market becomes ‘hostile’.

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, failing which car makers 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.

Earlier this year, Stellantis 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. The car and van maker has already made a significant investment in Vauxhall’s Ellesmere Port plant, which builds electric versions of the group’s small van.

Its Luton plant is set to produce the fully electric Vauxhall Vivaro Electric, Opel Vivaro Electric, Peugeot E-Expert, Citroen e-Dispatch and Fiat Professional E-Scudo in both right and left-hand drive from 2025.

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