Net zero fines may force Stellantis to shut European factories

Stellantis, the owner of Vauxhall, warns that it may close European factories due to strict EU carbon emission standards. Jean-Philippe Imparato stated that without changes, the company must either boost electric vehicle sales or reduce production of petrol and diesel cars.

He called current targets “unreachable” and mentioned the possibility of facing fines of up to €2.5bn in the coming years. Stellantis has over 20 factories in Europe, with potential closures mentioned, including an Italian plant.

Meanwhile, Ellesmere Port in the UK is transforming to produce only electric vehicles. The Society for Motor Manufacturers and Traders stresses the need for a government approach to enhance competitiveness and attract investment in the automotive sector.