Net zero fines ‘may force Vauxhall to shut factories'
Jean-Philippe Imparato, a senior executive at Stellantis, said European Union carbon emission standards would force the business to make 'tough decisions' without changes this year.
He said the only way to meet the targets would be to double sales of electric vehicles (EVs), or to scale back production of traditional petrol and diesel cars – known as internal combustion engine (ICE) vehicles.
Speaking in Italy, Mr Imparato said: 'I have two solutions: either I push like hell [on electric] ... or I close down ICE. And therefore I close down factories.'
The EU emission rules are designed to combat man-made climate change and require carmakers to cut the carbon emissions of the vehicles they sell by increasing the proportion that are electric.
Those that do not hit the targets risk hefty fines.
'Unreachable' targets
Carmakers have been lobbying for the targets to be delayed and relaxed, with the current regime set to be based on their average emissions from 2025 to 2027.
On this basis, Stellantis – which owns brands including Vauxhall, Citroen, Peugeot and Fiat – fears it could be hit with potential fines of up to €2.5bn (£2.2bn) within two to three years.
But Mr Imparato, who is Stellantis's chief of operations in Europe, dismissed the targets as 'unreachable'.
Stellantis operates more than 50 factories globally, including around 20 in Europe. Mr Imparato did not say where the company's plant closures might fall but he did at one point mention the Italian van-making plant of Atessa in his remarks.
Following the closure of its Luton plant earlier this year, the company's sole assembly plant in Britain is the Ellesmere Port facility near Liverpool.
That site is undergoing a major upgrade to become an EV-only plant, with electric production set to begin late next year.
A spokesman for Stellantis could not immediately comment on whether Ellesmere Port was at risk. However, the company has made significant investments in the site to produce electric vans.
The Society for Motor Manufacturers and Traders (SMMT) recently warned that Britain requires 'a whole of government approach to competitiveness' to retain and attract investment from the car industry.
'Electricity costs remain, as we speak, the highest in the world,' said Mike Hawes, the lobby group's chief executive.
'Internationally, we're worst for business rates, amongst the worst for the burden of government regulation.
'With international conditions causing problems beyond our control, it makes sense to ease the burdens we do control ... We need a compelling offer that redefines the UK's appeal as a place to invest.'
Jonathan Reynolds, the Business Secretary, has vowed that the Government is 'right behind' carmakers after designating them for support in the recent industrial strategy.
'Our collective job is to bring more investment, more product lines and more jobs here,' he said.
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