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Vauxhall’s parent company Stellantis has announced plans to close its van plant in Luton, days after it warned the government that it could slash production in Britain over Labour’s tough electric vehicle sales targets.
The firm, which also owns the Peugeot, Citroen and Fiat brands, says it wants to consolidate production at its Ellesmere Port factory.
Ellesmere Port is already set up to produce electric vehicles following a £100million investment. The motoring giant is now set to ditch its plans to convert Luton into another EV production plant exclusively for commercial vehicles.
The move puts more than 1,100 jobs at risk. Stellantis has said it intends to relocate ‘hundreds of jobs’ to the Cheshire port around 140 miles away.The announcement came days after ministers met with car bosses to discuss the contentious zero emissions vehicle (ZEV) mandate – which requires car firms to sell a certain amount of electric cars each year or face financial penalties.
Stellantis said today’s announcement came ‘within the context of the UK’s ZEV mandate’.
It comes as Germany has joined a growing backlash against fining car makers who miss net zero targets – suggesting the firms should be allowed to keep the money to invest in cutting emissions.
Chancellor Olaf Scholz has hit out at the European Union’s zero emission vehicle plans, which require manufacturers to reduce the emissions from their new cars and vans by 15 per cent compared to 2021 levels by next year.
The quickest way for firms to do this is to reduce the production of petrol and diesel cars and encourage people to swap to electric vehicles – but firms say motorists aren’t biting and warn jobs could be at risk if UK and EU mandates aren’t eased.
However, it will be the car firms that face penalties if they fail to shift enough battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) to hit the 15 per cent target.
This grow to a 55 per cent reduction in car emissions and 50 per cent vans by 2030. EU autocrats then want a 100 per cent reduction – i.e. no purely fossil fuelled cars and vans sold at all – by 2035.
Germany has a vested interest in protecting car firms from fines: its car industry is solely responsible for an estimated five per cent of GDP, and is home to huge names including Audi, BMW, Volkswagen and Mercedes-Benz
Mr Scholz told reporters on Monday he wanted firms to retain any fines that would be levied so it can be invested in working towards the EU’s targets.
‘The money must remain in the companies for the modernisation of their own industry, their own company,’ he said.
It comes amid growing discontent among car manufacturers at anti-petrol and diesel rules designed to cut carbon emissions from vehicles – including in Britain, where dealerships say drivers aren’t interested.
Under the UK’s zero emission vehicle (ZEV) mandate, 22 per cent of all vehicles sold this year have to be BEVs – either purely electric or hydrogen-fuelled.
As of October, battery electric vehicles made up 18.1 of the UK’s new car sales market – suggesting firms are falling massively short.
Demand has also grown for plug-in hybrid and hybrid vehicles, which combine an electric motor with a traditional engine. These come with lower road tax, but do not contribute to the ZEV mandate – good for motorists, not so much car makers.
Daily Mail
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Story from last year. https://www.bbc.co.uk/news/uk-england-beds-bucks-herts-66126185.amp
Apparently workers found out yesterday they could loose their jobs, as Stellantis is planning on shutting the plant and possibly moving production to Ellesmere Port, due to governments ZEV mandate, which I believe the government is to make an announcement on today.
Looks like they’re looking for any excuse to close the plant or get some government subsidies.
Enyaq EV
Agree. Stellantis is apparently investing in Ellesmere and likely want rid of Luton, to cut overheads.
Not heard anything on what gvernment are doing about ZEV mandate and helping manufacturers but, haven’t watch the news.
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