Stellantis may halt UK production without government support for electric vehicles
Are Electric Vehicles the Future of UK Production?
In a recent news conference held by the Society of Motor Manufacturers and Traders (SMMT) in London, Maria Grazia Davino, the top UK executive of Stellantis, made a bold statement that could have significant implications for the future of UK production. Stellantis, the parent company of brands like Peugeot, Fiat, Vauxhall, and Jeep, is facing pressure to boost demand for electric vehicles (EVs) in order to comply with regulations requiring automakers to sell more EVs.
The UK government has set a mandate that 22% of all new cars sold must be EVs, but according to SMMT data, only 16.1% of sales through May were fully electric cars. This shortfall could result in fines of £15,000 per non-compliant vehicle sold for automakers like Stellantis. Grazia Davino warned that unless the government takes action to increase demand for EVs, Stellantis may have to halt its UK production.
One of the key challenges facing the EV market in the UK is the lack of consumer incentives. While there are tax incentives for corporate fleets to buy EVs, there are no subsidies for individual consumers to purchase more expensive EVs over fossil-fuel equivalents. This has led to a situation where demand for EVs is not meeting the government’s targets.
In order to avoid fines, Stellantis may have to import fewer fossil-fuel models into the UK to focus on selling more EVs. Grazia Davino emphasized the importance of government support in the form of tax incentives for consumers and improved charging infrastructure to drive demand for EVs. She also stressed the need for Stellantis’ UK EV production to count towards its targets, even if some of the vehicles are exported.
Stellantis currently produces electric vans at its Ellesmere Port plant in northwest England and plans to start manufacturing electric vans at its Luton plant in southern England in 2025. Grazia Davino expressed a strong desire to keep production in the UK, but the company’s future in the country hinges on government support for the EV market.
As Britons prepare to elect a new government, the future of UK production and the automotive industry hangs in the balance. Will the government take action to boost demand for EVs and support automakers like Stellantis, or will the lack of incentives lead to a halt in production? The coming months will be crucial in determining the direction of the UK automotive industry and its transition to electric vehicles. Stay tuned for updates on this developing story.