Stellantis CEO Carlos Tavares announced that the company is nearing a decision regarding its future in the UK following months of discussions with the UK government about mandatory zero-emission vehicle sales. Tavares noted that a decision is imminent and will be made within the coming weeks.
He emphasized that if European governments expect Stellantis to sell more electric vehicles than naturally demanded, they must enact measures to boost demand. Tavares highlighted that the UK government's sales targets for electric vehicles are nearly double the "natural" demand level.
The UK implemented a regulation requiring that 22% of new cars sold by each automaker be zero-emission vehicles, with this figure rising to 80% by 2030. For vans, 70% of newly sold vehicles must be electric by 2030. Manufacturers who fail to meet these targets face fines of up to £15,000 (approximately $19,550) per vehicle, though they can engage in a credit trading system to avoid penalties and catch up on targets in subsequent years.
Currently, Stellantis produces small electric vans for brands such as Vauxhall, Citroën, Peugeot, Opel, and Fiat at its Ellesmere Port plant in the UK. Last year, Stellantis invested £100 million in converting this plant to manufacture fully electric vehicles. Additionally, the company produces medium-sized vans near London.
However, in June, Stellantis issued a warning about the sustainability of the UK's zero-emission mandate, prompting them to consider alternative production locations.
