MariaGrazia Davino,the UK head of Stellantis,has raised concerns that the stringent zero-emission vehicle(ZEV)mandate targets introduced in January 2024 could jeopardize the company’s production operations in the UK.

　　Speaking at the SMMT International Summit 2024,Davino clarified the potential implications of the new regulations:“While Stellantis UK will continue to operate,there is a real risk that our production activities in the UK may cease.”

　　She was optimistic about the company’s resilience in adapting to new challenges:“We can continue to grow and adapt because our company is structured to withstand various scenarios.However,the ZEV mandate targets will inevitably impact our production setup in the UK.”

　　Davino emphasized the importance of favorable conditions for manufacturing within a country.“We fight to keep our production in the UK,thanks to significant investments we’ve made.However,if the market conditions become untenably challenging,we may be forced to relocate our production,”she added.

　　The ZEV mandate requires that by 2035,all new cars and vans sold in the UK must be emission-free.This includes vehicles powered by hydrogen fuel cells,which emit only water.Starting in 2024,22%of a manufacturer’s sales must be electric vehicles(EVs),with penalties of£15,000 levied for each non-EV sold beyond this target.These targets are set to increase to 28%in the following year.

　　The mandate aims to accelerate the transition to electric vehicles to reduce carbon emissions significantly.However,the current consumer demand for EVs does not align with the expectations set by the government or the automotive industry.

　　Stellantis has proposed a solution to count all electric vehicles produced,not just those sold,towards the mandate targets.This strategy would be particularly beneficial at their Ellesmere Port facility,which has transitioned to producing only electric vans.If accepted,this could prevent the company from incurring severe financial penalties for non-compliance.

　　The debate continues on what should be included in the ZEV mandate targets.Stellantis argues for a broader interpretation that includes production numbers,which would significantly alleviate the potential financial burdens imposed by the new law.