Brexit: Stellantis threatens to close its UK plant

Stellantis is calling on the UK government to renegotiate the Brexit trade deal with the European Union. Otherwise, the Vauxhall plant in Ellesmere Port would have to be closed, warned the car company, which owns brands such as Peugeot and Opel. The reason for this is forthcoming changes to the so-called rules of origin: From next year, at least 45 percent of the value of an electric car must come from the United Kingdom or the European Union so that the vehicles can continue to be exported duty-free to the EU.




“If the cost of producing electric vehicles in the UK is no longer competitive and sustainable, operations will cease,” the BBC and the Financial Times quoted a Stellantis opinion in the UK Parliament’s Economic Affairs Committee as saying. The group sees itself “no longer able to comply with these rules of origin” after raw material costs have risen due to the pandemic and the energy crisis. The existing regulation must be extended until 2027. Stellantis itself employs more than 5000 people in the UK. There are also numerous jobs in the automotive industry.

In the document, the group also warns that uncompetitive costs for electric vehicles would mean that manufacturers stop investing in the UK and move their production abroad. Stellantis cited the closure of a Ford plant in Bridgend and the move of production of BMW’s next electric Mini to China. Car expert David Bailey spoke on the BBC of an existential threat to the British car industry. Recently, plans to set up their own battery production in Great Britain suffered a setback with the insolvency of the manufacturer Britishvolt.

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