Stellantis plans to stop car production in the UK

The car manufacturer (formerly PSA Peugeot Citroën) indicated on Tuesday that it will carry out its threat if the British government does not sufficiently support electric cars.

The decision has not yet been made and the group remains open to discussions, but the warning shot has indeed been fired. The Franco-Italian-American manufacturer Stellantis, parent company of Peugeot, Citroën, Fiat, Opel, Vauxhall and Maserati in particular, has two main manufacturing sites across the Channel: one in the north of England, the other in Luton, north London. On these two production sites, Stellantis has undertaken major investments and management made it clear on Tuesday June 25 during a press conference in London: “If the market becomes hostile to us, then we will consider producing elsewhere.”. “We need support”she insists.

The heart of the problem is the Labor Party’s plan to win the British legislative elections on July 4 against the current Conservative government. Labor plans to bring forward the ban on the sale of new cars running on petrol and diesel by five years. Europe has set this objective at 2035. British Labor would therefore bring it back to 2030 to accelerate the energy transition. But the objective is untenable in the eyes of Stellantis for whom the transition between the thermal engine and the electric cannot be done as quickly. Implied, this would be industrial madness, with serious consequences for employment.

The entire British automotive sector is firstly calling for stability in legislation. Unlike politics, the industry plans for the long term and not with rules that constantly change according to the moods of each person. The sector is also calling for public financial incentives for the purchase of electric vehicles. He estimates that cutting VAT in half over the next three years would put several hundred thousand additional cars on the road.

This is not the first time Stellantis has raised the red flag in the UK. A little over a year ago, the group had already threatened to close factories if London and Brussels did not agree to cancel a 10% surcharge on electric cars manufactured in England and crossing the Channel after Brexit. On this point, Stellantis had won its case, it remains to be seen whether the group will win its new fight.