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The Markets
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Transport

Car makers calls for tax cuts after Vauxhall threat

Car manufacturers in Britain are placing more pressure on the incoming government after it demanded support, days after Vauxhall's owner Stellantis threatened to shut its production factories in the UK.

The Society of Motor Manufacturers and Traders (SMMT) has urged the next government to "back British manufacturing" by offering tax cuts and changes to regulation, which is expected to help with the adoption of EVs.

"Maintaining the status quo is not an option,” the lobby group said, claiming that the UK was at risk of being "outcompeted" by the US, China, and the European Union.

Mike Hawes, chief executive of the SMMT, said: “Massive change is underway in the UK’s car factories as manufacturers retool for new electric models.

“Amid strong international competition for green automotive investment, however, the UK needs to ensure it has the most attractive conditions for manufacturing businesses and a compelling offer for existing and new investors."

Earlier this week, Stellantis UK boss Maria Grazia Davino warned the company could stop making vans in the UK due to the government's targets for EVs.

She claimed government sales mandates for zero-emission vehicles "could be very damaging" for its operations.

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