09:09 AM EDT, 06/25/2024 (MT Newswires) -- Stellantis ( STLA ) will stop producing vehicles in the UK if the government there does not ease sales targets for electric vehicles, Bloomberg reported Tuesday, citing the automaker's managing director the the region.

The UK this year introduced a target of 22% for each manufacturer's new car sales that should be zero-emissions, raising it to 80% in 2030 and 70% for vans.

The targets are unsustainable and Stellantis ( STLA ) would be forced to make discounts to meet the targets due to a slowing demand for EVs, Maria Grazia Davino reportedly told reporters at an industry event in London. Companies that fail to comply with the mandate could be fined as much as 15,000 British pounds ($19,016) per vehicle.

Davino was quoted as saying Stellantis ( STLA ) has invested in retooling its British plants, but if the UK market "becomes hostile for us we will enter an evaluation of producing elsewhere."

Stellantis ( STLA ) did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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