Stellantis may cease production at Ellesmere Port and Luton without more EV help

A Vauxhall Combo Electric positioned at the end of Ellesmere Port's production line as Ellesmere Port marks the start of electric vehicle production (Photo by Handout/Stellantis via Getty Images)

The owner of Vauxhall has issued a warning that production in the UK might cease if the Government doesn't do more to promote the switch to electric vehicles.

Maria Grazia Davino, the Managing Director for Stellantis UK, told an industry conference that decisions regarding their factories in Ellesmere Port, Cheshire and Luton, Bedfordshire could be made within the year. Under the zero emission vehicle (Zev) mandate, at least 22% of new cars and 10% of new vans sold by each manufacturer in the UK this year must be zero emission, usually pure electric, and this threshold is set to increase yearly.

If manufacturers fail to meet these requirements, they risk being made to pay the government £15,000 per vehicle sold over the set limits. However, it is believed that no businesses will face fines this year as they can use alternatives such as buying credits from competitor companies.

Speaking at a Society of Motor Manufacturers and Traders event in London, Ms Grazia Davino reportedly said: "In the UK there will be consequences (from the policy) for sure. Stellantis UK does not stop, but Stellantis production in the UK could stop." She also voiced that the next government needs to "respond" to increasing the demand for electric vehicles, adding: "I want to keep the production (in the) UK."

Stellantis began production of electric-only vans at its Ellesmere Port factory in September 2023, with plans to convert its Luton plant to manufacture electric vans from the first half of next year.