Stellantis UK boss Maria Grazia Davino has warned that the company could stop building vehicles in the country if the government’s electrification initiatives create a “hostile” trading environment.
Speaking at the Society of Motor Manufacturers and Traders’ annual summit in London, Davino cautioned against the existential threat posed by measures such as the Zero-Emission Vehicle (ZEV) mandate and proposed 2030/2035 bans on the sale of new combustion-engined cars.
Asked by Autocar whether Stellantis can continue to grow its UK business under the current terms of the ZEV mandate – which mean a rising proportion of each manufacturer's sales in the UK must be electric from 2024-2030 – Davino said: "Yes, we can continue to grow. We can survive because we are fit for every circumstance."
However, she added: "In the UK, for sure, there will be consequences on the production set-up.
"Stellantis UK does not stop. Stellantis production in the UK could stop."
Davino echoed recent comments by Stellantis CEO Carlos Tavares, who labelled the ZEV mandate “terrible” and warned it could “kill” the UK automotive industry.
Stellantis currently builds small and mid-sized vans and MPVs at its factories in Ellesmere Port and Luton, respectively, having ended UK car production on the retirement of the last-generation Vauxhall Astra in 2021.
“It’s not what we want to do,” said Davino, who added that she does “not have a plan” or a projected timeframe for ending UK production if the need arises.
As of 2024, 22% of every manufacturer's UK sales must be pure-electric to avoid the imposition of penalties. This proportion rises in increments to 80% in 2030, before combustion sales are banned completely in 2035 - under current Conservative policy. Labour has said it will return the date of this ban to 2030.
But Davino said the current market demand does not back up this projected timescale: "This trajectory could be very damaging in the near future for the industry. It's not only what happens in 2030 or 2035, but what happens in 2024, 2025, 2026…
"Because if demand does not follow the offer, then we will be forced to take decisions because we manage profit and loss; we manage operational decisions that are impacting the UK.
"I can't answer the question about 'when', because we don't plan this. It's not what we want to do, and we will fight for our production in the UK.
"But you have to have advantages to build in a country."
Davino pointed to substantial recent investments in the Cheshire and Bedfordshire plants as proof of Stellantis’s commitment to the UK, but asked “why should we continue investing” if operations at those plants are rendered unviable by "hostile" market conditions?
Add your comment