Vauxhall threatens to close Luton plant amid row over ZEV mandate

Slower-than-expected demand for electric vehicles means carmakers face hefty fines if they fail to meet official targets, while repeated protests from the industry that the government is not not doing enough to encourage consumer demand for new electric vehicles. electric cars has so far fallen on deaf ears. All that could be about to change, however, as reports suggest Business Secretary Jonathan Reynolds is set to announce a consultation on the subject. imminent modification of the terms of the ZEV mandate.

When Stellantis announced its new investment for Luton in February 2024, factory director Mark Noble described the announcement as an exciting new chapter in the history of the famous factory site, saying: “limited production of our medium electric van in Luton from next year, when the first customer vehicles roll off the production line, it is a fitting way to mark Luton’s 120th anniversary.

However, even then, Stellantis Group’s UK managing director, Maria Grazia Davino, warned that the company expected “quid pro quo” from politicians.

“While this move demonstrates Stellantis’ confidence in the factory, this first step in its redevelopment towards an all-electric future requires the UK government to further drive demand in the electric vehicle market and support manufacturers investing in the UK. United for a sustainable transition. “, she said.

The fact that plans announced only this year were replaced by a controversial decision to close the historic Luton factory suggests Stellantis does not believe the government has delivered on its promises. However, in announcing its plan to close Luton, the company stopped short of directly blaming a government failure, saying only that the decision to close Luton was “made in the context of the UK’s ZEV mandate”.

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