Stellantis’ UK chief has warned that the automobile maker could stop production within the country should the federal 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 settle on UK production inside the following yr.
The UK’s ZEV mandate goals to speed up the transition from petrol and diesel cars to electric models by 2035, with EV sales targets progressively increasing. EV automobile sales targets for this yr have been set at 22% rising to twenty-eight% next yr to succeed in 80% by 2030, failing which automobile makers will face fines of £15,000 for every non-compliant vehicle sold.
“Within the UK, there will definitely be consequences on account of these mandates,” said Davino. “Stellantis UK is not going to halt its operations, but UK production could come to a stop.”
Stellantis owns brands corresponding to Peugeot, Fiat, Vauxhall, and Jeep and has previously said it might move to limit the import of ICE models to the UK to satisfy the 22% EV sales goal.
Earlier this yr, Stellantic chief executive Carlos Tavares branded Britain’s EV policy as “terrible”, warning that it could ultimately result in 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 with the intention to avoid heavy fines, jeopardising financial stability.
Tavares then warned: “To survive, firms must stay within the black. I is not going to sell cars at a loss”, adding that the net zero measures could mean it ceases offering some models and even reduce its presence in Britain.
Currently, Stellantis produces electric vans at its Ellesmere Port plant in northwest England and plans expanding production at its Luton plant by 2025.
This Article First Appeared At www.am-online.com
