Vauxhall and Citroen owner Stellantis NV (NYSE:STLA, EPA:STLA) has warned it could stop making vans in the UK due to the government's targets for EVs.
UK boss Maria Grazia Davino claimed the sales mandates for zero-emission vehicles "could be very damaging" for its operations.
“You have to make strategies that are based on efficiency. I want to keep the production [in the] UK and I want to be clear on this,” she said.
"But, if this market becomes hostile for us we will enter an evaluation of producing elsewhere."
Stellantis has invested in its sites in Luton and Ellesmere Port, with the latter an EV-only factory used to make small electric vans.
Stellantis has warned previously about the impact of the government's net zero policies, designed to force manufacturers to switch production towards electric vehicles.
From this year, at least 22% of cars they sell must be electric with rises in stages to 80% by 2030 with a complete ban kicking in from 2035.
Devino's warning echoes that of her boss, Carlos Tavares, who warned earlier this year that the carmaker would be forced to cut back on sales of petrol cars because of the targets.
Stellantis wants UK-built electric vans to count towards its quota alongside EV subsidies to help counter a sharp decline in sales recently.
Labour has vowed to reinstate an even tougher policy if it gets into power with the date for a total ban on [petrol and diesel cars to switch to the original timetable of 2030.
Rishi Sunak delayed the original ban by five years