Vauxhall maker says Brexit deal must be renegotiated or it could shut UK plant
The Vauxhall and Fiat manufacturer Stellantis has urged the government to renegotiate rules in the Brexit deal that it says could force it to shut some of its UK operations, putting thousands of jobs at risk.
The world’s fourth-biggest carmaker, which also produces Citroën and Peugeot vehicles, said only two years ago that the future of its electric car plants in Ellesmere Port and Luton were safe.
However, it now says it can no longer meet Brexit rules that require 45% of parts by value to be sourced in the UK or EU, after a rise in raw material costs during the pandemic and the energy crisis.
This means electric vans made at the Ellesmere Port site will face tariffs of 10% when exported to mainland Europe from next year because they do not have enough locally sourced parts, putting the future of the plant at risk, the company said.
“To reinforce the sustainability of our manufacturing plants in the UK, the UK must consider its trading arrangements with Europe,” Stellantis said.
Bosses from the manufacturer are due to meet the business secretary, Kemi Badenoch, on Wednesday to discuss the issue. The company also wants arrangements for manufacturing parts in Serbia and Morocco to be reviewed.
The trade deal is due to be renegotiated in 2025 as part of the original pact between the UK and the EU signed by Lord Frost in December 2020.
Stellantis has asked for a renegotiation of the Brexit deal to avert a “threat to our export business and the sustainability of our UK manufacturing operations”. It said the government needs to reach an agreement with the EU to keep the existing rules as they are until 2027.
In a submission to a House of Commons inquiry into electric car production, the company said its investments in the UK were
Read more on theguardian.com
