Stellantis, the world’s fourth-largest automaker, has warned that it may be forced to close its UK plants unless the government renegotiates the Brexit deal.

The company, which owns Vauxhall, said that the current rules on the origin of parts used in electric vehicles would make it uncompetitive to manufacture them in the UK.

Under the current rules, electric vehicles must contain at least 45% of parts from the UK or the EU in order to avoid tariffs. However, Stellantis said that it would not be able to meet this requirement because the batteries for its electric vehicles are currently sourced from mainland Europe and China.

As a result, the company said that it would face tariffs of 10% on exports to the EU, which would make its electric vehicles more expensive than those made in the EU. This would make it difficult for Stellantis to compete in the European market, and could lead to the closure of its Ellesmere Port and Luton plants, which employ around 5,000 people.

Stellantis’s warning is the latest in a series of concerns raised by the automotive industry about the impact of Brexit. In March, Ford said that it was considering moving production of its Transit van from the UK to Turkey because of the new tariffs. And in April, Nissan said that it would need to make changes to its Sunderland factory in order to remain competitive after Brexit.

The government has said that it is committed to supporting the automotive industry, and that it is working with businesses to find solutions to the challenges posed by Brexit. However, it is unclear whether the government will be able to renegotiate the Brexit deal in order to meet Stellantis’s demands.

If Stellantis is forced to close its UK plants, it would be a major blow to the UK automotive industry. The plants are two of the UK’s largest car factories, and they produce a range of popular models, including the Vauxhall Corsa, the Peugeot 208, and the Fiat 500. The closure of the plants would lead to the loss of thousands of jobs, and it would damage the UK’s reputation as a center for automotive manufacturing.

The government needs to take Stellantis’s warning seriously. The automotive industry is a vital part of the UK economy, and it cannot afford to lose jobs and investment. The government needs to find a way to renegotiate the Brexit deal in order to protect the UK automotive industry.

In addition to the economic impact, the closure of Stellantis’s UK plants would also have a significant impact on the local communities where they are located. The plants are major employers in the areas, and their closure would lead to job losses and economic hardship. The government needs to take into account the social impact of Brexit when making decisions about the future of the UK automotive industry.

The government has a responsibility to protect the UK automotive industry from the negative impacts of Brexit. The government needs to renegotiate the Brexit deal in order to ensure that the UK remains competitive in the global automotive market. The government also needs to provide support to the automotive industry to help it adapt to the challenges of Brexit.


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