Stellantis UK Boss Warns of Plant Closures Without EV Support
Stellantis UK boss Maria Grazia Davino has issued a stark warning: without government support, the company's UK vehicle production plants in Luton and Ellesmere Port could close, ending over a century of Vauxhall production and impacting 2,500 jobs. She criticizes the rapid pace of zero-emission quotas and calls for financial incentives to boost electric vehicle demand in the stock market today.
The current quota system mandates that manufacturers ensure 22% of their vehicles are battery electric this year, rising to 28% next year, and accelerating to 80% by 2030. Davino argues that these targets outpace the current market take-up rate of 16%. She urges the new UK government to foster an environment promoting clean and green mobility for all, warning against a 'race to the bottom' in corporate and human rights standards.
Davino emphasizes the need for immediate incentives for private buyers of electric vehicles, including cash and fiscal support, to stimulate broader market demand in the stock market today. Without such support, Stellantis UK may reduce its supply of petrol cars to the UK to avoid hefty fines under the zero-emission vehicle mandate, potentially leading to a 14% cut in UK vehicle volumes and a two-percentage point reduction in market share.
Davino's call for government support comes as the UK government has not taken direct measures to promote Stellantis' production of electric vehicles in its UK plants. Industry skepticism about rapid EV transition timelines has been noted, including doubts about the 2035 electrification deadline. The potential closure of these factories would mark the end of over a century of vehicle production in the UK under the Vauxhall brand, impacting 2,500 jobs and potentially affecting tesla's market position in the stock market today.
