Vauxhall threatens to pull plug on UK car making amid row over EV sales targets

The owner of Vauxhall has warned it could stop making cars in the UK amid a row over electric vehicle sales targets.

Stellantis – one of the world’s biggest car makers – has threatened to close its plants in Ellesmere Port in Cheshire and Luton over government quotas for zero-emission vehicles. The company employs 2,500 staff across the two sites.

In a dramatic escalation of tensions between the manufacturer and ministers, Stellantis UK boss Maria Grazia Davino put the Government on notice, saying the decision will be made in ‘less than a year’.

Closure threat: Vauxhall-owner Stellantis – one of the world’s biggest car makers – has threatened to close its plants in Ellesmere Port in Cheshire (pictured) and Luton

She also said Stellantis, which also owns Citroen and Peugeot, could slash the number of petrol and diesel motors it sells in the UK to meet the targets.

Under the Government’s mandate, manufacturers must sell an increasing proportion of electric vehicles each year or face a hefty fine.

The sale of new petrol and diesel motors will be banned from 2035.

The Labour party has pledged to introduce the ban in 2030 and is likely to face urgent talks with car makers should it win the election on July 4 as expected.

Speaking at a car industry conference in London, Davino said: ‘We have undertaken big investments in Ellesmere Port and in Luton, with more to come.

‘But if this market becomes hostile to us, we will enter an evaluation for producing elsewhere.’

Her comments come after Stellantis chief executive Carlos Tavares warned that the car maker would slash petrol vehicle sales to avoid falling foul of the new rules.

The company makes electric vans in Ellesmere Port and recently outlined plans to make the vehicles at its Luton plant from next year.

Previously it urged ministers to do more to boost consumer demand for zero-emission cars.

The concerns voiced by Stellantis were echoed in a warning from car dealership Vertu Motors that green targets could push up the price of second-hand petrol and diesel vehicles.

The company, which has 189 sales and aftersales sites, said the so-called zero emission mandate – which requires manufacturers to sell a certain percentage of electric vehicles each year – ‘has the potential to create volatility in the new car market’.

It went on: ‘This may include reduced supply of new petrol and diesel cars in the coming periods and would lead to a strengthening of petrol and diesel used car values.’