Stellantis, the parent company of British car maker Vauxhall, has confirmed plans to resume the sale of diesel cars in Britain in a massive blow to the Energy Secretary’s EV push
One of Britain’s largest car manufacturers has announced plans to return to diesel vehicles in a devastating setback to Ed Miliband’s EV ambitions. Stellantis, which owns British brand Vauxhall, revealed they would restart diesel car sales in the UK, with intentions to actually “increase” their range after previously pledging commitment to electric vehicles.
The proposals will see Stellantis resurrect previously axed diesel models back into European production. Additionally, they plan to continue selling current diesel variants for considerably longer as part of a fresh strategy focused entirely on profit generation.
The major automotive firm has also scrapped new EV launches after absorbing a whopping £22million writedown. This essentially represents an asset reduction on the company’s balance sheet to reflect current, diminished market value, indicating losses on items including stock.
The announcement triggered Stellantis’ share price to nosedive dramatically, The Daily Telegraph reports.
Stellantis stated: “We have decided to keep diesel engines in our product portfolio and – in some cases – to increase our powertrain offer. At Stellantis, we want to generate growth, that’s why we are focused on customer demand.”, reports the Express.
Antonio Filosa, Stellantis’ chief executive, attributed “poor execution” to their electric vehicle transition. He also acknowledged the brand was guilty of “overestimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires”.
Stellantis is reported to have brought back diesel variants of some of its best-selling models, including the Peugeot 308, Opel Astra, Citroen Berlingo and the DS 4 throughout Europe. This development stands in stark opposition to Labour’s stance, with the Government forging ahead with Zero Emission Vehicle (ZEV) Mandate objectives and its 2030 ban on petrol and diesel cars.
Whilst this only impacts vehicles manufactured in the UK, Stellantis runs multiple production facilities in Britain, including their Ellesmere Port and Luton sites. These locations produce cars from leading Stellantis marques such as Vauxhall, Peugeot and Citroen.
The ZEV Mandate compels companies to manufacture a growing proportion of electric vehicles annually, until the sale of nearly all new purely combustion petrol and diesel variants are entirely prohibited.
Beyond 2030, solely hybrid models and petrol and diesel cars made by niche manufacturers will be permitted for sale until 2035.
In his role as Energy Secretary, Ed Miliband has championed the UK’s ZEV Mandate shift, emphasising that speeding up the move to electric vehicles “will drive forward our clean energy superpower mission”.
He argued that switching to EVs would deliver “huge economic opportunities” and would “back British manufacturers and provide highly-skilled jobs in emerging industries”.
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