Executives from Stellantis (NYSE:STLA), the automaking giant behind brands including Peugeot, Chrysler and Citroën, are meeting with U.K. ministers Wednesday to warn post-Brexit trading arrangements severely risk its operations in the country.
Stellantis manufactures Vauxhall, Fiat, Opel and other vehicles across two plants in the U.K., employing more than 5,000 people. It plans to move both toward majority and then 100% EV production as it rolls out electrification across its brands.
In a submission to a government enquiry into vehicle battery production, the company said it would be at a competitive disadvantage going forward because of tariffs due to be imposed on batteries transported between the U.K. and mainland Europe.
The EU–U.K. Trade and Cooperation Agreement gave battery and EVs a grace period before full Rules of Origin tariffs kick in, responding to these sourcing challenges. However, they will become progressively stricter in the coming years, rising to 45% and then 65% in terms of required domestic production. Automakers otherwise face 10% export duties on EVs.
Stellantis said that if it manufactures its batteries in China and mainland Europe in the coming years as currently planned, it would face “higher logistics costs” that would threaten the “sustainability of our U.K. manufacturing operations.”
STLA shares gained 25 cents, or 1.6%, to $16.09.
Related Stories
