VAUXHALL and Peugeot owner Stellantis has said it could stop production at its Ellesmere Port and Luton plants should "stupid" regulatory conditions change.

Maria Grazia Devino, UK managing director, warned the carmaker would make a decision in "less than a year" due to government sales quotas and a lack of incentives relating to VAT on vehicles and electricity.

"You have to make strategies that are based on efficiency. I want to keep the production in the UK and I want to be clear on this," she said.

"But, if this market becomes hostile for us we will enter an evaluation of producing elsewhere."

Devino described the Zero Emissions Vehicle (ZEV) mandate, which enforces automakers to hit certain EV targets or face fines, as "stupid," adding that the new quota could be "very damaging".

At least 22 per cent of Stellantis' cars must be electric by the end of this year, under the new EV sales targets. This will rise yearly, reaching 80 per cent by 2030 and with a full ban from 2035. The government has been approached for comment.

(c) 2024 City A.M., source Newspaper