Stellantis CEO, Carlos Tavares has issued a warning regarding the UK's electric car mandate, indicating that it could potentially lead to the withdrawal of Vauxhall from the British market. Tavares has labeled the law, aimed at limiting petrol vehicle sales, as a "disaster for the UK," arguing that it would compel manufacturers to sell vehicles at a loss, according to Telegraph.
Tavares has emphasized that urgent changes to the regulations are imperative to avoid such drastic measures. He outlined that if amendments are not made promptly, Stellantis might have to significantly reduce the number of cars sold in Britain or cease sales altogether.
Although stopping short of confirming a complete withdrawal, Tavares asserted, "I'm not going to sell cars at a loss."
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Concerns About UK's Electric Car Policy
Tavares added that concerns about the UK's electric car mandate are due to various issues affecting the electric car market. These include declining consumer interest in electric vehicles, primarily due to their high prices, inadequate charging infrastructure, and consumer anxiety about their limited range.
He also emphasizes that the current market share of electric cars falls significantly short of the levels mandated by the government's regulations, which require a certain percentage of car sales to be electric.
Tavares is particularly worried about the Zero Emissions Vehicle (ZEV) mandate, which was implemented earlier in the year. This mandate requires that a minimum of 22% of cars sold by manufacturers must be electric. Over time, this requirement will increase, reaching 80% by 2030.
Eventually, by 2035, the mandate will lead to a complete ban on selling new petrol cars.
Tavares has expressed criticism of these regulations, arguing that they are too stringent. He believes that the mandate forces carmakers to continually raise their electric vehicle (EV) sales beyond what the market naturally demands. Failing to meet these requirements would lead to punitive fines, which could negatively impact manufacturers' profitability.
To address these concerns, Tavares proposes adjustments to ease the pressure on manufacturers. He suggests combining allowances for passenger cars and light vans and allowing manufacturers to count export vehicles toward meeting domestic targets.
He has called for his revisions to the regulations and urged Mark Harper, the Transport Secretary, to take action.
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