Stellantis has warned parliament to make changes the current Brexit deal as thousands of jobs are currently at risk. This danger comes a result of the existing Brexit deal due to issues with the UK’s trading arrangements with Europe. Because of this, the car manufacturer has warned that it will not be able to build EVs in the UK, as part of their pledge, unless changes to the deal are made.
Stellantis cautioned, that under the deal, their company would face tariffs when exporting electric vans to Europe. The agreed trade deal requires 45% of the value of an electric vehicle to come from Britain or the EU from 2024 in order to avoid tariffs. The carmaker has advised the government to extend the current rules on the sourcing of parts until 2027, instead.
This request was made due to fears that manufacturers will no longer continue to invest and may relocate to operations outside of the UK if costs of EV manufacturing become uncompetitive and unsustainable in the UK.
The multinational automotive manufacturing corporation, owns brands such as Peugeot, Citroen, Fiat, and Vauxhall, and is the fourth largest carmaker in the world. But, this issue with the trade deal has created fears within the mobility industry that the British car sector does not have the capacity or supply to make the sweeping switch to electric vehicles.
In 2021, Stellantis announced a 100-million-pound electric vehicles investment in its Ellesmere Port so that the company would be able to develop enough parts in Britain to meet the rules. However, they have claimed that they are now unable to meet these rules of origin, due to multiple external issues, including the raw material cost inflation and supply issues.
Alongside the problems with the trade agreement, the manufacturer has issued major concern over the potential for factory closures and a huge number of job loss as a result.
