Stellantis is urging the Authorities to re-negotiate Brexit guidelines to ensure that the enterprise to decide to UK electrical car manufacturing.

The automobile producer group, which owns 16 car manufacturers together with Vauxhall, Peugeot, Citroen and Fiat stated: “If the price of EV manufacturing within the UK turns into uncompetitive and unsustainable, operations will shut.”

In 2021, Stellantis introduced it was investing £100 million in Vauxhall’s Ellesmere Port manufacturing plant to create a brand new electrical car (EV) manufacturing unit.

The plant produces business and passenger variations of the Vauxhall and Opel Combo-e, Citroen e-Berlingo and Peugeot e-Associate.

In a submission to a Commons inquiry into EV manufacturing, Stellantis outlined that its UK investments have been centred on assembly the strict phrases of the post-Brexit free commerce deal.

Till January 1, 2024, the foundations stipulate that a minimum of 40% of the content material of EVs and 30% of batteries should originate from the EU or the UK.

From 2024 till January 1, 2027, this will increase to 45% of the car and 50-60% of batteries. If that is exceeded, carmakers should pay a tariff of 10%.

Stellantis stated it was “now unable to satisfy these guidelines of origin” because of the surge in uncooked supplies prices and power costs.

Because of this, the automobile maker is asking for the Authorities to succeed in a brand new settlement with the EU to maintain the present guidelines as they’re till 2027. It additionally desires preparations for manufacturing elements in Serbia and Morocco to be reviewed.