Wednesday 17 May 2023

Car giant says Brexit is bad news for EVs

Stellantis, one of the world’s largest car manufacturers, has said that Brexit could cause problems for electric vehicles (EVs) being built in the UK.

The company owns Fiat, Peugeot, Citroen and Vauxhall and says that it may have to pull EV production in the UK due to Brexit rules on where parts come from.

It is calling on the government to change the Brexit deal, stating: “If the cost of EV manufacturing in the UK becomes uncompetitive and unsustainable, operations will close.”

Stellantis is pushing for rules to remain the same until 2027, which will require agreement from the EU.

The rule change in question will see 45% of the value of an EV needing to be from either the UK or the EU.

However, due to the jump in prices for materials with the energy crisis and Ukraine War, Stellantis has said it can no longer reach these requirements.

The company added: “To reinforce the sustainability of our manufacturing plants in the UK, the UK must consider its trading arrangements with Europe.”

Spokesperson for Business Secretary Kemi Badenoch said she is “determined to ensure the UK remains one of the best locations in the world for automotive manufacturing, especially as we transition to EVs.”