Stellantis to decide future of UK plants in weeks

Stellantis has said it will make a decision on the future of its UK vehicle manufacturing plants in the coming weeks.

The vehicle manufacturer produces electric vehicles at plants in Ellesmere Port and Luton, employing more than 1,000 workers across both sites.

It said in the summer that it may have to consider its future in the UK if the ZEV Mandate was not relaxed. The ZEV Mandate sets EV sales targets for vehicle manufacturers. It stipulates that 22% of car sales must be electric this year, with that percentage incrementally to 80% by 2030. VM’s face fines of £15,000 for every unit sold that exceeds these limits.

However, a number of manufacturers have said these targets are unachievable due to waning demand for EVs from private buyers, and have called for government incentives to help boost sales.

Speaking at the Paris Motor Show, Carlos Tavares, the outgoing chief executive of Stellantis, said:

“We are now reaching a point where we have to make a decision, and that will happen in the next few weeks.”

More than 53,000 EVs were sold in the UK in September, according to the Society of Motor Manufacturers and Traders, making it the highest month on record, meaning more than 20% of all new car sales were electric. But fleet registrations drove the uptick, with sales to private buyers up just 3.7% compared to a 17.2% rise in diesel registrations during the month.