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Stellantis threatens to withdraw UK production

Maria Grazia Davino is the head of Stellantis in the United Kingdom (UK) and, without mincing words, she was the one who accused the British Government of abusing vehicle production control measureswhich brands cannot sell due to lack of demand. Davino assures that the automotive group led by the Portuguese Carlos Tavares has no intention of moving its manufacturing facilities out of the country, but does not accept having to manufacture cars with engines that customers do not want.

Stellantis currently operates factories in Ellesmere Port, where the electric vans are produced, and in Luton, which still only manufactures petrol versions, but will also begin producing battery versions in 2025. The group’s facilities on British soil make Vauxhall models , Opel, Peugeot, Citroën and Fiat. Now, at a time when a change of local government is approaching, with legislative elections scheduled for July 4, Stellantis wants to draw attention to the fact that it will surely remain in the United Kingdom, selling and repairing vehicles, but does not guarantee that existing production lines will continue to operate.

Under current regulations, manufacturers are obliged to sell more and more electric vehicles. But, as Carlos Tavares has already stated, the volume required now is roughly double what British drivers are willing to buy. The commercial vans produced by Stellantis’ various brands in the UK must be made up of 22% electric vehicles, an impossible volume to achieve. However, this lack of customers for battery-powered cars does not exempt the manufacturer from paying heavy fines for not meeting the targets set by the Government.

Davino tried to explain to British politicians that if this obligation to produce electric vans for which there are not enough customers continues, Stellantis must find other solutions. And among them a local VAT aid system, to encourage the acquisition of electric models, or close factories and start importing vans with combustion engines from other European countries.

Source: Observadora

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