PA photo dated 6th July 2021 of the Astra assembly line at Vauxhall's plant in Ellesmere Port, CheshirePA photo dated 6th July 2021 of the Astra assembly line at Vauxhall's plant in Ellesmere Port, Cheshire


Stellantis boss threatens to slash UK presence in response to ‘terrible’ ZEV mandate

  • Stellantis unhappy with impact of ZEV mandate
  • Boss Carlos Tavares says policy is ‘terrible for the UK’ and insists ‘we won’t sell cars for a loss’
  • Executive refuses to rule out pulling models from sale in an attempt to meet targets

Time 11:14 am, April 26, 2024

Stellantis has threatened to slash its presence in the UK in response to the ‘terrible’ ZEV mandate.

The carmaker’s boss, Carlos Tavares, has been speaking to the national media this week, amid reports the company is unhappy with net zero measures currently being pursued by the UK government.

Tavares said that the current ZEV mandate is ‘terrible for the UK’ and suggested that Stellantis may be forced to cut back the number of cars it sells here as a result.

He added that the outfit would not ‘support an red ink business’ and even refused to rule out pulling some models from sale altogether, the Daily Telegraph reports.

Despite the threat, a source close to Stellantis told the paper that the company was more likely to restrict sales or raise prices in order to deal with the problem.

Tavares, 65, added that demand for electric cars is currently ‘sagging’ and insisted: ‘I’m not going to sell cars at a loss.’

Carlos Tavares, via Stellantis media site, 30 Jan 2024

Stellantis boss Carlos Tavares

In a briefing with reporters yesterday (Apr 25), he said: ‘It’s very simple. The ZEV mandate is [forcing] carmakers to have a growing EV sales mix every year.

‘The problem is the natural demand of the market today in the UK on EVs is half of the mandate.

‘If your mandate is imposing on you a level of BEV sales mix that is double the natural demand of the market, and if the ZEV mandate puts me in a corner by saying, “if you don’t meet this, I’m going to kill you with fines”, the consequence is that everybody will start pushing the BEV, which then totally destroys profitability.

‘You would not expect Stellantis to support a red ink business.’

The ZEV mandate requires a certain percentage of the sales of every car manufacturer to be electric, otherwise, firms will face financial penalties.

This year, the required percentage is 22 per cent, rising each year to 80 per cent in 2030.

Car makers unable to meet their targets will be fined, with the government proposing a £15,000 penalty for every non-electric car and £18,000 per non-electric van they miss their target by.

By way of assistance, Tavares wants to be allowed to combine allowances for passenger cars and light vans. He is also calling on carmakers to be able to ‘put cars they make for export towards their domestic targets’.

The Department for Transport has been approached for comment.

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.

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