(Bloomberg) -- Stellantis NV is close to deciding the future of its presence in the UK after months of dialogue with the government about its zero-emission vehicle sales mandate, Chief Executive Officer Carlos Tavares said.
The owner of British brand Vauxhall warned in June that it would evaluate producing elsewhere because the mandate was unsustainable. On Monday, Tavares told Bloomberg Television that the government was setting a threshold for battery-electric vehicle sales that is roughly double the “natural” level of demand.
If governments in Europe want Stellantis to sell a mix of EVs that’s above natural demand levels, “they need to help to stimulate the demand,” Tavares said, noting that the company has discussed this with the UK for several months.
“We are now reaching a point where we have to make a decision, and that will happen in the next few weeks,” he said.
The UK introduced a mandate starting this year requiring that 22% of each manufacturer’s new-car sales be zero-emission, with that threshold rising to 80% in 2030. For vans, 70% of new sales have to be electric by the end of the decade.
Automakers face fines of up to £15,000 ($19,550) per vehicle for missing targets, but they can avoid penalties by using a credit-trading program and catch up in later years.
Tavares’ warning coincides with the new UK government hosting an investment summit aimed at attracting foreign investors to the country.
Stellantis makes small electric vans across its Vauxhall, Citroën, Peugeot, Opel and Fiat brands at its site in Ellesmere Port, following a £100 million investment to turn the factory into an electric-only plant last year. The company also manufactures mid-size vans in Luton, near London.
--With assistance from Jonathan Ferro and Lisa Abramowicz.
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