Stellantis commitment to UK EV production under threat due to Brexit

Stellantis commitment to UK EV production under threat due to Brexit

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Stellantis is urging the Government to re-negotiate Brexit rules in order for the business to commit to UK electric vehicle production.

The car manufacturer group, which owns 16 vehicle brands including Vauxhall, Peugeot, Citroen and Fiat said: “If the cost of EV manufacturing in the UK becomes uncompetitive and unsustainable, operations will close.”

In 2021, Stellantis announced it was investing £100 million in Vauxhall’s Ellesmere Port manufacturing plant to create a new electric vehicle (EV) factory.

The plant produces commercial and passenger versions of the Vauxhall and Opel Combo-e, Citroen e-Berlingo and Peugeot e-Partner.

In a submission to a Commons inquiry into EV production, Stellantis outlined that its UK investments were centred on meeting the strict terms of the post-Brexit free trade deal.

Until January 1, 2024, the rules stipulate that at least 40% of the content of EVs and 30% of batteries must originate from the EU or the UK.

From 2024 until January 1, 2027, this increases to 45% of the vehicle and 50-60% of batteries. If this is exceeded, carmakers will have to pay a tariff of 10%.

Stellantis said it was “now unable to meet these rules of origin” as a result of the surge in raw materials costs and energy prices.

As a result, the car maker is calling for the Government to reach a new agreement with the EU to keep the current rules as they are until 2027. It also wants arrangements for manufacturing parts in Serbia and Morocco to be reviewed.

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