Stellantis Issues Warning to UK Government Over ZEV Mandate
Stellantis recently made a bold move by threatening to shut down its UK manufacturing plants if the government does not reconsider its stance on the Zero Emission Vehicle (ZEV) mandate. This public threat tactic has become common among global car manufacturers who feel their concerns are not being addressed through traditional channels.
Threats of pulling out of the UK have been made by major players like Nissan, BMW, Toyota, Stellantis, and Ford in the past, citing the need for a competitive manufacturing environment. The latest concern raised by Stellantis is the government’s push for a higher percentage of electric vehicle sales, which they believe is ahead of consumer demand.
Stellantis, known for producing vans in the UK, expressed worries that the legislation is moving faster than market demand. The company’s UK head, Maria Grazia Davino, emphasized the potential consequences on production if demand does not align with the required offerings.
Despite recent investments in UK facilities, including a shift to electric van production, experts believe Stellantis’s threat is credible due to its capacity across Europe. The company’s underutilized plant capacity in Europe provides leverage in negotiations, as seen in other regions like Italy.
The potential impact on UK manufacturing is significant, especially with Stellantis considering moving van production to cheaper locations like Turkey and Portugal. The UK’s high energy prices have been a concern for manufacturers, making other European countries more attractive for production.
Past instances have shown that the UK government is willing to support automakers facing credible threats. Companies like Nissan and BMW received substantial government funding to support their investments in electric vehicle production in the UK.
As the automotive industry shifts towards electrification, companies like McLaren are advocating for a strategic approach to maintain the UK’s position as a leader in high-value manufacturing. McLaren emphasizes leveraging the UK’s expertise in motorsport and performance cars to excel in high-performance electrification technologies.
With the upcoming election, car manufacturers are looking to engage with the Labour party, which has shown support for electric vehicle mandates. Stellantis and other companies hope that Labour’s focus on preserving manufacturing jobs will align with their concerns about moving production abroad.
The automotive industry’s future in the UK will depend on how the government responds to these threats and challenges posed by shifting market demands and global competition.
