Stellantis Calls for Brexit Deal Renegotiation to Save UK Manufacturing Plants

Stellantis Calls for Brexit Deal Renegotiation to Save UK Manufacturing Plants

Stellantis, the parent company of Vauxhall, has called on the UK government to renegotiate its Brexit deal with the EU. The company has expressed concerns about the future of UK plants and their ability to meet the trade rules on where parts are sourced. In a submission to a parliamentary committee’s inquiry on electric vehicle (EV) production, Stellantis has warned that it is no longer able to meet the strict terms of the deal. The company has called for the date to be extended to 2027 or “trade between the UK and EU would be subject to 10% tariffs.”

Risk to UK Manufacturing Operations

Stellantis has stated that its commitment to the Luton and Ellesmere Port factories was based on meeting the strict terms of the deal. The deal requires 45% of the value of EVs to originate in the EU or UK from 2024 to qualify for trade without tariffs. If Stellantis sources batteries from mainland Europe and China, as currently planned, its UK plants will be at a competitive disadvantage due to the higher logistics costs that it will face to transport the batteries from mainland Europe to the UK. This is a threat to the company’s export business and the sustainability of its UK manufacturing operations.

Concerns about the Future of UK Manufacturing

Stellantis has called for the UK to consider its trading arrangements with Europe to reinforce the sustainability of its manufacturing plants in the UK. The company’s submission continued: “If the cost of EV manufacturing in the UK becomes uncompetitive and unsustainable operations will close, manufacturers will not continue to invest and relocate manufacturing operations outside of the UK, as seen with previously established UK manufacturers such as Ford and Mini.” Stellantis has no plans to make its own batteries in the UK, unlike Nissan, and has expressed concerns about the viability of the UK due to competitive factors including high energy costs.

In conclusion, Stellantis has called on the UK government to renegotiate its Brexit deal with the EU to correct elements that place the future of UK plants at risk. The company has warned that it is no longer able to meet the strict terms of the deal and has called for the date to be extended to 2027. Stellantis has expressed concerns about the future of UK manufacturing and has called for the UK to consider its trading arrangements with Europe to reinforce the sustainability of its manufacturing plants in the UK.

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