Stellantis could halt UK production over EV rules

Stellantis could halt its UK production unless the British government takes significant steps to boost demand for electric vehicles (EVs), according to the automaker’s top UK executive.

Speaking at an industry conference organised by the Society of Motor Manufacturers and Traders (SMMT) in London, Maria Grazia Davino, Group Managing Director at Stellantis UK stated that a decision regarding the future of Stellantis’ UK production could come in “less than a year”.

Davino highlighted a key difference between the UK’s and the EU’s regulatory environments. While the EU allows automakers to meet CO2 emissions reduction targets with a mix of hybrids and EVs, the UK mandates a minimum percentage of fully electric car sales starting this year, with heavy fines for non-compliance.

“In the UK, there will be consequences (of the mandates) for sure,” Davino said. “Stellantis UK does not stop, but Stellantis production in the UK could stop.”

Currently, Stellantis produces electric vans at its Ellesmere Port plant and has plans to begin manufacturing electric vans at its Luton plant by 2025.