Vauxhall and Peugeot owner Stellantis has said it could stop production at its Ellesmere Port and Luton plants should “stupid” regulatory conditions change.
Maria Grazia Devino, UK managing director, warned the carmaker would make a decision in “less than a year” due to government sales quotas and a lack of incentives relating to VAT on vehicles and electricity.
“You have to make strategies that are based on efficiency. I want to keep the production in the UK and I want to be clear on this,” she told a conference in London.
“But, if this market becomes hostile for us we will enter an evaluation of producing elsewhere.”
Devino described the Zero Emissions Vehicle (ZEV) mandate, which enforces automakers hit certain EV targets or face fines, as “stupid,” adding that the new quota could be “very damaging” for its operations.
At least 22 per cent of Stellantis’ cars must be electric by the end of this year, under the new EV sales targets. This will rise yearly, reaching 80 per cent by 2030 and with a full ban from 2035.
Devino’s comments come after Stellantis chief executive Carlos Tavares said the Dutch firm would need to slash sales of its petrol cars in the UK to meet net zero targets, or increase prices. “I will not sell cars at a loss,” he said, describing the policy as “terrible.”
Stellantis also warned last year that its British car plants would close, creating thousands of job losses without a swift renegotiation of the Brexit deal, which would bring in tariffs on the EV trade between Europe and the UK.
Sales of new petrol and diesel vehicles were initially set to be phased out in 2030 but Rishi Sunak pushed back the deadline until 2035 in September last year.
Labour, meanwhile, has pledged to reinstate the initial deadline should it take power following July’s general election.
Stellantis announced in February it planned to start manufacturing electric vans in Luton from 2025, safeguarding around 1,500 jobs.
The government has been approached for comment.