Vauxhall Brexit warning as it calls for deal with EU to be renegotiated or ‘UK factories could close’

Vauxhall owner Stellantis is warning of “significant job losses” if the UK’s Brexit deal with the EU is not amended.

Stellantis have already committed to making electric vehicles in the UK, but say they are no longer able to meet Brexit trade rules on where parts are sourced. Stellantis makes Vauxhall, Peugeot, Citroen and Fiatcars and are the fourth largest car marker in the world, employing 5,000 people in the UK. 

A Stellantis spokesperson told a Commons inquiry into the supply of batteries for EV manufacture that the firm’s UK investments were at risk due to the terms of the Brexit deal. The company described the deal as a “threat to our export business and the sustainability of our UK manufacturing operations”.

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The company is calling on the government to make an agreement with the EU to keep existing rules until 2027, rather than changing the rules next year. New rules will mean that 45% of an electric car’s value should originate in the UK or EU to qualify for trade without tariffs. Giving written evidence to the inquiry, the company said UK operations would close if the cost of EV manufacturing becomes “uncompetitive and unsustainable”.

It said: “Manufacturers will not continue to invest and relocate manufacturing operations outside of the UK, as seen with previously established UK manufacturers such as Ford and Mini. The closing of UK manufacturing will see significant job losses, the loss of a skilled workforce and a negative impact to the UK economy.

“Manufacturers will not continue to invest and relocate manufacturing operations outside of UK, as seen with previously established UK manufacturers such as Ford and Mini.”

Vauxhall owners warns of job losses due to BrexitVauxhall owners warns of job losses due to Brexit
Vauxhall owners warns of job losses due to Brexit | Adobe

Electric cars and batteries were among the final parts of the Brexit deal agreed between then- prime minister Boris Johnson and president of the European Commission Ursula von der Leyen in 2020. A government spokesperson said it was “determined” to keep the UK as a competitive location for car manufacturers.

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