Vauxhall owner Stellantis considers the future of the British brand’s historic manufacturing sites as ZEV mandate causes headaches
Since escaping the axe back in 2019, it seems that the historic Vauxhall manufacturing sites in the UK are under threat once more.
Speaking at the half-year results event, CEO of parent company Stellantis, Carlos Tavares announced that the company has “a specific problem to solve in the UK”, referring to the ZEV mandate which requires 22% of a maker’s cars and 10% of vans to be electric, rising to 80% by 2030 and 100% by 2035, with punitive fines if these targets are not achieved.
In the light of what he described as “disappointing” results, Tavares announced the decision to trigger “a strategic review of the business model, including the manufacturing footprint.”
“As we have two EV plants in the UK, and as the UK government is asking for more BEVs, we cannot be in a position where our business model is damaged by the ZEV mandate,” he added. Despite ongoing discussions with the UK government, this clearly casts a shadow over the Stellantis manufacturing sites in the UK – the two former Vauxhall car plants at Luton and Ellesmere Port.
If the company did decide to exit the UK, it would be writing off a sizeable investment, since Luton received a £100m upgrade in 2019 and Ellesmere Port £100m to switch from Astra to van production.
Vauxhall was founded in 1857 as a marine engine and pump manufacturer, before turning its hand to cars in 1903. The brand was bought by GM in 1925 and remained under the American giant’s umbrella for 92 years until the PSA Group (now Stellantis) took ownership. As well as at Luton and Ellesmere Port, Vauxhalls are now also produced in Stellantis facilities in various countries around Europe.
