Stellantis N.V. (STLA), the manufacturer of widely sold car brands such as Vauxhall, Citroën and Fiat, has said that net-zero drives limiting the sale of petrol vehicles would be “terrible for the UK”.
Stellantis Says Limiting Petrol Car Sales Will Hurt UK Economy
The Telegraph reported that the clampdown on the sale and ownership of combustion engines may force Stellantis to cease operations in Britain. According to the Telegraph, Carlos Tavares, the chief executive officer of Stellantis, indicated that a law curbing petrol car sales will compel manufacturers to either sell vehicles at a loss, limit the amount of sales in Britain, or stop the sale of these cars overall.
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According to a source close to the matter, the company may first curb sales in Britain. Tavares also highlighted the decline in demand for electric vehicles (EVs). Additionally, Tavares maintained that forcing vehicle manufacturers to meet legal targets and sacrifice profitable sales would have broader economic impacts.
Under the government’s zero emissions vehicle (ZEV) mandate, which the UK brought into force in January, at least 22% of cars sold must be EVs. This will increase to 80% by 2030.
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Tavares indicated to the government that, in the UK, the current EV demand is half of what the mandate requires. STLA shares closed Wednesday, 24 April 2024 trading at $24.86 apiece with a current market cap of roughly $73.50bn.
The company announced on 17 April 2024 that it would publish its Q1 financials on 30 April 2024. On 22 April 2024, the company announced that a dividend of $1.55 per share would be payable on 3 May 2024.
