City AM: Brexit is ‘threat’ to UK car factories says parent firm of Vauxhall, Citroen, Peugeot and Fiat

17 May 2023

One of the world’s largest carmakers has said it will be unable to keep their commitment to make electric vehicles in the UK without changes to the Brexit deal.

Stellantis – the parent company of Vauxhall, Citroen, Peugeot and Fiat – which employs more than 5,000 people in the UK – told a Commons inquiry into supply of batteries for EV manufacture that their UK investments were in the balance due to the terms of the trade deal.

The world’s fourth biggest car maker committed to making electric vehicles at its Ellesmere Port and Luton plants two years ago.

But in a submission to the inquiry, the company said the Brexit deal was a “threat to our export business and the sustainability of our UK manufacturing operations”.
It called on the Government to reach agreement with the EU to maintain existing rules until 2027, rather than next year’s planned changes which state 45 per cent of an electric car’s value should originate in the UK or EU to qualify for trade without tariffs.

Stellantis said the rise in the cost of raw materials during the pandemic and energy crisis meant it was “unable to meet these rules of origin”...

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