The Net Zero crackdown on combustion engines could force the maker of Vauxhall to scale back its presence in Britain, its boss has warned.
Carlos Tavares, Chief Executive of Stellantis, said that a law to limit petrol car sales was “terrible for the U.K.” and would force manufacturers to sell vehicles at a loss.
If Ministers did not make urgent changes to the rules, he suggested Stellantis could be required to slash the number of cars it sells in Britain – and refused to rule out halting sales of some models altogether.
A source close to the company said the more likely option was that sales could be restricted or that it would be forced to put up prices to compensate.
Asked whether the maker of Vauxhall and Citroën cars could stop selling models in the U.K., he replied: “I’m not going to sell cars at a loss.”
Mr. Tavares blamed sagging demand for electric cars, which were “crashing in the world of reality” due to high prices, poor charging infrastructure and range anxiety among consumers.
The “natural” market share of electric cars was currently just half of what car companies are required to sell under regulations brought into force this year, he added.
Mr. Tavares warned that the Government’s zero emissions vehicle (ZEV) mandate would force carmakers to slash prices to unprofitable levels in order to meet the targets and avoid punitive fines.
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