Vauxhall owner could leave the UK with decision due 'in the next few weeks' amid electric car targets row

CEO Carlos Tavares has issued a stark warning, urging ministers to relax Zero Emission Vehicle mandate regulations to safeguard the future of Stellantis' plants in Ellesmere Port and Luton.

This development comes at a time when demand for electric cars across Europe is experiencing a significant downturn, with consumers hesitant due to high prices and fears about charging infrastructure.

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In a recent interview with Bloomberg, Tavares emphasised the urgency of the situation, stating: "We are now reaching a point where we have to make a decision, and that will happen in the next few weeks."

The CEO called on the Government to "help to stimulate the demand" for electric vehicles, asserting that the current threshold for green sales is approximately double the "natural" levels of demand.

The Zero Emission Vehicle mandate requires manufacturers to have 22 per cent of total sales come from electric vehicles by the end of the year.

These totals will slowly rise over the next 12 years, with an 80 per cent target in 2030 and 100 per cent in 2035. Failure to meet these quotas could result in hefty fines of up to £15,000 per vehicle.

This is currently in line with the deadline to ban the sale of new petrol and diesel vehicles from 2035, although Labour has clarified that changes will take place "in due time".

Stellantis currently produces electric cars and vans at its Ellesmere Port facility, while manufacturing larger petrol and diesel vans in Luton. The company had plans to commence EV production in Luton later this year.

This plea comes as Stellantis grapples with slumping EV sales across Europe, with consumers increasingly reluctant to purchase electric models due to their high price tags and concerns over charging infrastructure.

The European Automobile Manufacturers' Association (ACEA) recently reported a sharp decline in EV registrations across the European Union, with only 92,627 battery-powered cars registered last month, a 44 per cent drop compared to August last year.

The ACEA has called on European governments to delay ambitious green goals, warning that maintaining the 2035 deadline for ending petrol and diesel car production could lead to "multi-billion euro fines or unnecessary production cuts and job losses".

In a separate development, Stellantis has announced that CEO Carlos Tavares is set to step down from his position in early 2026, at the conclusion of his current term.

The company has already initiated a formal process to identify his successor, led by a Special Committee of the Board chaired by John Elkann, and is expected to be completed by the fourth quarter of 2025.

The announcement comes as part of a broader restructuring effort aimed at simplifying operations and enhancing organisational performance in response to the challenging global environment facing the automotive industry.

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Commenting on the decision, Tavares said: "During this Darwinian period for the automotive industry, our duty and ethical responsibility is to adapt and prepare ourselves for the future, better and faster than our competitors to deliver clean, safe and affordable mobility.

"The newly appointed leadership team members will make their valuable contributions to our overall team’s determination to tackle the challenges ahead, reinforcing and accelerating our transformation to become the preferred mobility tech company.

"I would like to thank everyone who contributed to lay the foundations for Stellantis’ future success."