Stellantis has partly blamed the Government’s Zero-Emissions Vehicle (ZEV) Mandate for plans to end van manufacture at the Vauxhall plant in Luton.
The multi-brand group has announced the start of consultation with employees and Trade Unions on a plan to transfer manufacture of its new mid-sized battery-electric LCVs to the group’s other UK plant at Ellesmere Port, Merseyside – the plant will see a £50 million investment as a result.
Previously the Luton plant was scheduled to be updated to manufacture the new electric version of the Vivaro alongside combustion-engined LCVs. Manufacture of these will now transfer to France with the Luton plan closing, putting 1100 jobs at risk and ending close to 120 years of Vauxhall vehicle making in the Bedfordshire town.
Luton also builds LCVs for other Stellantis brands, Peugeot, Citroën and Fiat, and manufacture of these will also be transferred.
Previously the Stellantis passenger car plant, Ellesmere Port underwent a £100 million investment in 2021 to enable it to manufacture battery-electric vehicles including the Vauxhall Astra. The plant already makes the group’s small electric LCVs, the Vauxhall and Opel Combo Electric, Citroën e-Berlingo, Peugeot E-Partner and Fiat E-Doblo.
Mandate issues
Announcing the decision, Stellantis stated that it was being made “in the context of the Government’s ZEV Mandate”. Several manufacturers have been calling for more support for the transition to EVs as they struggle to meet the demands of the Mandate. This requires 22% of a manufacturer’s car sales and 10% of its LCV sales to be zero-emission by the end of 2024, with fines of £15,000 per vehicle for missing the figure.
Sales of electric cars have been rising but greatly aided by major discounting regarded by industry sources as unsustainable, while electric LCV take-up is actually falling back.
In July Stellantis chief executive Carlos Tavares warned that the future of both the Ellesmere Port and Luton plants was under threat, citing the ZEV Mandate as a reason. Separately Nissan, which has a major UK factory in Sunderland, described the Mandate as “undermining the business case for manufacturing cars in the UK, and the viability of thousands of jobs and billions of pounds of investment.”
Transport Secretary Louise Haigh recently met with industry leaders to discuss the effects of the ZEV Mandate and afterwards indicated some flexibilities might be possible, while adding that the Mandate would not be weakened. The Government was expected to announce a consultation on revisions to the Mandate on the same day Stellantis made its announcement.
Vehicles from other Stellantis brands including Fiat will also be affected.
Many fleet industry figures have called for vans to be at the centre of any ZEV Mandate rethink. The Association of Fleet Professionals argued that ‘flexibilities’ reportedly under consideration by the Government – such as allowing manufacturer factory emissions to be taken into account or including exported vehicles made in the UK in the tally – would do nothing to encourage van fleets to electrify.
Paul Hollick, AFP chair, said: “The Van Plan that we launched with the BVRLA and other parties a few months ago explained the demand issues that are behind slow electric van uptake – insufficient public and private charging infrastructure, regulatory barriers, and affordability and availability of suitable product.
“The problem with electric van sales is not so much that they are lower than expected, as seen in the electric car market, but that they appear to have stalled altogether around the 5% mark,” Hollick added.
“Fleets are effectively refusing to buy them for practical reasons and forcing manufacturers to make increasing percentages of vehicles under the ZEV Mandate doesn’t solve that core problem.”
The Society of Motor Manufacturers & Traders described the Stellantis announcement as “a sobering reminder of the challenge and cost the industry faces in transitioning a market that is not fully ready.”
The SMMT added that the UK has arguably the toughest targets and most accelerated timeline in the world, without the consumer incentives to drive the necessary demand.
Dear Prime Minister – we need to talk electric vehicles…
