Stellantis Might Shutter UK Van Plant Over EV Rules
[Stay on top of transportation news: Get TTNews in your inbox.]
Stellantis NV proposes closing a van factory in Luton, England after the automaker warned it may shrink output in the country over the U.K.’s zero-emission vehicle sales mandate.
The Vauxhall owner aims to shift the site’s production of mid-sized vans to its facility in Ellesmere Port to raise efficiencies, it said Nov. 25. It also plans to transfer hundreds of jobs to Ellesmere Port and invest an additional £50 million ($63 million) there.
Stellantis had already threatened to pull the plug on its U.K. operations, warning about the impact of what it says are the country’s too stringent EV targets. The U.K. introduced rules requiring 10% of new van sales this year to be zero-emission, rising to 70% by the end of the decade. There are similar rules for cars.
Automakers face fines of as much as £15,000 per vehicle if they fail to comply, but they can avoid penalties by using a credits-trading program and catch up in later years.
Stellantis makes small electric vans across its Vauxhall, Citroën, Peugeot, Opel and Fiat brands at Ellesmere Port, following a £100 million investment to turn the factory into an electric-only plant. The Luton factory employs around 1,100 people.
Want more news? Listen to today's daily briefing below or go here for more info:
