RUNNING DRY
Major car brand that makes UK best-seller could stop selling ALL of their petrol motors in just MONTHS
Executives have previously threatened to pull out of the UK altogether.
A MAJOR car brand that makes one of the UK's best-selling cars has suggested it could stop selling all its petrol motors within months.
The company, which is the third-largest automotive manufacturer in the world, is struggling to comply with strict new Government EV rules.
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Stellantis owns a number of popular marques including Vauxhall, Peugeot and Alfa Romeo.
It is responsible for models like the Vauxhall Corsa - the UK's third-best-selling car for 2023 with over 40,000 registered last year.
However, that and other fan-favourite models could be removed from sale by the end of the year, according to the firm's UK boss Maria Grazia Davino.
In an interview with , Ms Davino pointed to the Government's ZEV Mandate as the reason behind the move.
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The policy requires that car markers hit set targets for the proportion of their sales that are made up of zero-emission vehicles like electric cars.
What is the ZEV Mandate?
Many Brits might be aware that the Government is enforcing a ban on the sale of new petrol and diesel cars and vans from 2035.
This was originally set for 2030 but PM Rishi Sunak pushed the deadline back last year.
However, Mr Sunak did not announce any relaxation in the ZEV Mandate, which requires firms to produce progressively fewer internal combustion models in the years running up to the cut-off.
ZEV stands for Zero Emission Vehicle, with manufacturers ordered to have a certain percentage of total sales made up of such motors in each year.
Most companies are doing this by increasing their focus on battery electric vehicles (BEVs).
Brands including Ford, Peugeot and Vauxhall have all announced they will be electric only by 2030.
Many are making the transition five years ahead of schedule as the mandate requires 80% of sales to be ZEVs by that year anyway.
Failure to do so can see companies slapped with fines of up to £1,500 for each petrol or diesel car they produce over the 20% threshold.
ZEV requirements per year as a % of sales:
2024 - 22%
2025 - 28%
2025 - 33%
2027 - 38%
2028 - 52%
2029 - 66%
2030 - 80%
2031 - 84%
2032 - 88%
2033 - 92%
2034 - 96%
2035 - 100
Brands can be fined up to £1,500 per car they produce over the limit each year.
Some manufacturers, like Stellantis, are concerned that they will not be able to sell enough EVs to meet the benchmarks, leading them to reduce their output of petrol and diesel models to stay within the correct proportions.
Ms Davino said that Stellantis was "trying not to" take this route but suggested it could be the only choice.
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She added: "Fines are not an option for me and that’s the reason [to reduce ICE volume].
"We can’t be fined, it’s not ethical and it’s not the way we are set up.
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"We will not pay fines."
More explicitly, she confirmed that the company would reduce production of combustion cars to stay within the limits "if needed".
This could see popular models removed from sale within months until next year to comply with the 2024 target - with a similar situation likely going forward as the restrictions tighten.
However, the executive urged ministers to cut VAT on EVs to help boost demand and avoid a drop in production.
It comes after Stellantis threatened to stop building cars in the UK and shut its two factories here within a year over the "impossible" Mandate.
Meanwhile, rivals Ford shared a bizarre update on the newly revived Capri just days ahead of its unveiling.
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The Department for Transport declined to comment on Ms Davino's statements regarding the ZEV Mandate but emphasised that the policy had been developed following a consultation with the industry.
They also pointed out that there are multiple ways in which companies can comply with the regulations and that some firms are already ahead of their targets for 2024.
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