Vauxhall owner to decide fate of UK factories 'in next few weeks'

The owner of the Vauxhall, Citroën and Peugeot brands has said a decision will be made on the future of its UK plants "in the next few weeks", amid a row over government electric vehicle quotas.

- Lisa O'Carroll

Carlos Tavares, the outgoing chief executive of Stellantis, said the company was nearing a decision on the future of Ellesmere Port and Luton.

The company said in June that it could be forced to close the plants if government rules were not relaxed.

Tavares said Stellantis would make a "correction" to its UK business in the coming weeks in response to the damage the government's zero-emissions vehicle mandate had done to profitability.

Carmakers have been ramping up pressure for government subsidies for EV sales amid a race to comply with the mandate.

The initiative is aimed at managing the phase-out of sales of new petrol and diesel cars, and the switch to EVs, over the next six years.

"We are now reaching a point where we have to make a decision, and that will happen in the next few weeks," Tavares said.