Stellantis is facing a difficult and tense time. After the controversies that arose in Italy and those in the United States where, just a few days ago, a new cut in the number of employees was announced, the automotive group also has problems in the United Kingdom, with CEO Carlos Tavares attacking the British government over a regulation called ZEV (Zero Emission Vehicle).
Stellantis’ Carlos Tavares clashes with UK government over ZEV mandate
This regulation was introduced at the beginning of last year and mandates quotas for the sale of electric vehicles. Under the current terms of the ZEV mandate, automakers must achieve an electric vehicle sales mix of at least 22% in the UK this year, or face hefty fines. This percentage will gradually increase to 80% by 2030, in line with the phase-out of ICE car sales in 2035.
In an interview with British journalists at Stellantis’ Ellesmere Port small van factory, Tavares acknowledged the logic behind the concept, stating, “I think it makes sense that they are imposing an increase in electric vehicle sales,” but then added, “The problem is the magnitude and the timing of the ZEV mandate relative to natural market demand.”
Tavares estimated that “natural market demand in the UK for BEVs today is half of the mandate” and warned of the dangers of enforcing this proportion through legislation and fines. Carlos Tavares called the current ZEV mandate “a terrible thing for the UK” and warned that it could “kill” the local’s automotive industry.
The situation in the UK is just one of the many consequences that car manufacturers are facing due to the EU’s ban on the production of combustion engine cars after 2035. The UK, despite no longer being part of the EU, has decided to phase out cars with internal combustion engines by that date. According to many manufacturers, including Carlos Tavares’ company, the transition to electric cars must be gradual and take into account the current demand for zero-emission vehicles.