Stellantis factory closure - what does this mean for net zero

Stellantis factory closure - what does this mean for net zero

27 Nov 2024 Posted By Richard Smith

The closure of the Stellantis (Vauxhall's parent company) Luton van plant will mean 1,100 jobs are at risk across South Bedfordshire. This deeply concerning news has left many across our industry asking the government what this means for its plans for net zero.

Many across the HGV, LGV and Coach sectors seek clarity and certainty to invest. We have long been calling for a clear roadmap and blueprint on the road to net zero for HGVs and coaches and we will continue seek clarifications in all our engagement with ministers.

Ministers have responded to the Stellantis news by agreeing to an immediate review of the ZEV Mandate policy for cars and vans. 

These rules currently say at least 22 per cent of vehicles made in British factories must be battery powered. More carrot, less stick! That’s the obvious conclusion we can draw from these events and this announced urgent review. If Net Zero is to succeed then, in the circumstances, I’m heartened that the Government appears to have got that clear message.

This week’s events have ramifications for the entire road transport and logistics sector. With lorries accounting for 20% of UK domestic transport CO2 emissions, we support the need to decarbonise and we’re clear that the phase-out dates for HGVs of 2035 and 2040 are needed to give industry the certainty it needs. 

However, we've been clear that expecting hauliers on tight margins to absorb the estimated £100bn cost by themselves was always going to be a tall order. 

With a ZEV mandate enforced by fines not yet applying for HGVs and coaches, an opportunity still exists to consider alternative ways forward for the heavy commercial vehicle sector. 

Our different approach contains two elements - firstly, a loan scheme part underwritten by the Government is put in place to attract the investment finance needed; secondly, accountability through a requirement to report emissions would ensure that companies hold each other to account on their plans to reduce emissions.

We believe this could solve some tricky technical problems emerging from the ZEV Mandate experience - such as ensuring that vehicles are manufactured to meet actual operational need.

Meanwhile, urgent clarity is also needed on specific phase-out dates for coaches. Whilst we believe that their decarbonisation pathway will mirror that of lorries given their similar operating characteristics, a signal from the Government over its intentions for coaches will help drive the investment needed.

We welcome the Government’s intention to review its ZEV Mandate approach, and we call on Ministers to clarify what all of this means for HGVs and Coaches. We want to see credible, affordable and realistic measures in place for the commercial vehicle fleet which support our unique circumstances, and which assist, not hinder, our sector’s ability to invest.