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Stellantis Warns of Possible UK Factory Closure Due to Brexit, Urges Renegotiation

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Stellantis Calls for Brexit Deal Renegotiation to Prevent Factory Closure

Stellantis, the owner of Vauxhall, Peugeot, Citroen, and Fiat, warns of potential UK factory closures if Brexit deal terms aren’t reconsidered. Tariffs and trade rules pose threats to electric car manufacturing and export to the EU.

Urgent Action Needed to Maintain UK Car Manufacturing Competitiveness

Stellantis urges the government to reach an agreement with the EU, requesting the preservation of existing trade rules until 2027. The company also seeks a review of manufacturing parts arrangements in Serbia and Morocco.

Concerns Raised by Major UK Car Manufacturers

Stellantis is not alone in expressing concerns. All major car manufacturers in the UK have reportedly communicated similar apprehensions to the government regarding the impact of trade rules on their operations.

Implications for Stellantis’ UK Manufacturing Operations

Stellantis highlights the threat posed by trade rules of origin, citing cost increases and difficulties meeting the requirements due to rising raw material and energy expenses. Failure to secure an agreement could result in 10% tariffs on UK-made cars exported from next year.

Potential Relocation of Manufacturing Operations and Missed Investment Opportunities

The risk of manufacturers relocating their operations abroad due to uncompetitive conditions in the UK is a pressing concern. The absence of local battery plants and lack of government support for gigafactories could hinder investment and jeopardize the growth of the UK car industry.

Urgent Government Action Required to Safeguard UK Car Manufacturing

Labour and industry experts call for decisive action from the government to protect the future of UK car manufacturing, emphasizing the need for a supportive industrial policy, domestic battery production, and incentives to attract investment in the electric vehicle sector.


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