Stellantis May Stop Production in UK without More EV Incentives

TapTechNews June 26th. According to Reuters and SkyNews, Maria Grazia Davino, the top executive of Stellantis in the UK, said on Tuesday local time that if the British government fails to come up with more measures to stimulate the demand for electric vehicles and help the company comply with the new electric vehicle regulations, Stellantis will possibly stop production locally.

Davino said at a press conference held by the Society of Motor Manufacturers and Traders in London that in less than a year, the company may make a decision about whether to produce in the UK in the future.

It is reported that the EU requires automakers to meet carbon dioxide emission reduction targets through a combination of hybrid and electric vehicles, but the UK has begun to require automakers to sell a certain proportion of pure electric vehicles this year, or else they will face huge fines.

Davino said in response, These regulations will definitely have consequences in the UK - Stellantis' production in the UK may stop, although Stellantis UK (TapTechNews note: referring to the company's business in the UK) will not stop. I need to make it clear that I hope to continue production in the UK.

In addition, Davino also stated that in recent months, vehicle prices have remained high and the charging infrastructure is not perfect, resulting in a slowdown in consumers' demand for electric vehicles, so she believes that the continuously rising target by 2030 may be very destructive.

This is not the first time Stellantis has threatened to leave the UK - last year, the company had issued a warning that it would shut down its factories in the UK unless (the UK side) renegotiates the potential tariffs on its electric vans exported to the EU. Subsequently, the EU and the UK reached a relevant agreement before the deadline.

Carlos Tavares, the chief executive of Stellantis, said in April this year: The mandatory requirement for zero-emission vehicles (ZEV) will accelerate the self-destruction of the entire industry, and I will not sell cars at a loss. If the UK really hopes to carry out manufacturing in the UK and protect it, then changes must be made.