The car giant behind Vauxhall has threatened to mothball its UK factories amid a row over net zero targets for electric vehicle (EV) sales.

Stellantis warned on Tuesday that it would be forced to close plants at Ellesmere Port and Luton, where it makes vans, unless the Government relaxed rules forcing manufacturers to sell a certain proportion of EVs. 

It has also threatened to reduce the number of petrol and diesel cars it sells in the UK.

The warning dramatically escalates a dispute with the Government over the so-called zero emission vehicle (ZEV) mandate, which requires car makers to sell rising proportions of electric cars annually. 

From this year, at least 22pc of cars they sell must be electric and the figure rises gradually to 80pc by 2030. In 2035 the sale of new petrol and diesel cars will then be banned.

However, Maria Grazia Davino, UK managing director for Stellantis, said the rules were out of step with consumer demand and risked making sales unprofitable.

Stellantis makes electric cars and vans at its Ellesmere Port plant and vans in Luton, employing more than 1,000 workers across both sites. 

Speaking at a car industry conference in London, Ms Davino told journalists the mandate would have a big impact and “damage the UK”.

‘Hostile market’

Speaking at a car industry conference, she told journalists the mandate would have a big impact and “damages the UK”.

Ms Davino added: “We have undertaken big investments in Ellesmere Port and in Luton, with more to come.

“But if this market becomes hostile to us, we will enter an evaluation for producing elsewhere.”

Asked how long Stellantis would wait for a decision from the Government, she said: “Less than a year.”