(qlmbusinessnews.com Tues. 15th Oct, 2024) London, UK —
Stellantis to Make Crucial Decision on UK Car Plants as EV Quota Deadline Looms
The future of Vauxhall’s UK plants in Ellesmere Port and Luton hangs in the balance, with a decision expected within weeks, according to Stellantis, the parent company of Vauxhall, Citroën, and Peugeot. The looming decision comes amidst an ongoing row over the UK government's electric vehicle (EV) quotas, which could force the company to rethink its operations.
Carlos Tavares, the outgoing CEO of Stellantis, revealed that the company has been assessing the profitability of its UK operations in light of the government's zero-emissions vehicle mandate. This mandate, which seeks to phase out new petrol and diesel car sales by 2030, has put pressure on car manufacturers to accelerate EV production, a move that Tavares says has harmed the company’s UK profitability.
Stellantis has been in discussions with the government about potential subsidies to boost EV sales, which could mitigate the impact of the mandates. However, without a change in policy or financial support, the company may be forced to “correct” its UK operations.
The EV transition isn’t just affecting Stellantis in the UK. Across Europe, car manufacturers are grappling with new tariffs, particularly after the European Union imposed additional duties on Chinese EVs. These tariffs are designed to protect European manufacturers but could backfire by encouraging Chinese carmakers, such as BYD, to set up plants in Europe, which could lead to more factory closures across the continent.
Tavares cautioned that tariffs might accelerate the need for European manufacturers to close plants, particularly in traditional car-making powerhouses like Germany, France, and Italy. Chinese firms, benefiting from lower energy costs and incentives in countries like Hungary and Spain, could take advantage of the situation by building locally and avoiding import tariffs.
The situation remains fluid, with both the UK and EU automakers under significant pressure. As Stellantis prepares to make its decision on UK operations, the outcome could have wide-reaching implications for the future of the British automotive industry.
This News Story is brought to you by QLM Business News, your Digital Media Channel
Visit QLM businessnews.com
For more business news stories also follow us on Facebook, X and Youtube.
To Help qlm business news bring you more new stories like this, please like, share and subscribe.
Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.
