Stellantis, the automotive group that controls brands such as Fiat, Chrysler, Peugeot and Citroën, has asked the UK government to renegotiate part of its trade deal with the EU.
According to a document tabled by the company in Parliament, operations on British soil could also be closed “if the cost of manufacturing electric vehicles in the United Kingdom is not competitive and sustainable”.
Stellandis is urging Conservative Prime Minister Rishi Sunak’s government to reach an agreement with the EU to extend current rules on the origin of auto parts until 2027, postponing the planned transition to 2024.
If this is not done, from next year, 45% of the value of an electric vehicle sold in the EU will have to come from the United Kingdom or the bloc to avoid additional customs charges, according to a deal signed between London and Brussels after Brexit.
This would make the country lose competitiveness as it would have to import batteries (responsible for up to half of electric car costs) and other components to ensure production. One of the brands in the Stellandis portfolio is the British Vauxhall.
A spokesman for the automotive committee said the document was tabled in the House of Commons in February in response to a parliamentary committee inquiry into batteries for electric vehicles.
