UK car investment decision looms in test of Brexit and Stellantis

Automaker Stellantis, the merger between Peugeot and Fiat's parent companies, will likely decide whether to make fresh investment in Britain in the next few weeks, its boss said on Tuesday, in an early test for both it and the Brexit trade deal.

Automaker Stellantis, the merger between Peugeot and Fiat's parent companies, will likely decide whether to make fresh investment in Britain in the next few weeks, its boss said on Tuesday, in an early test for both it and the Brexit trade deal. Peugeot-maker PSA said in 2019 that it wanted to keep open its northern English Ellesmere Port plant by building the new Vauxhall/Opel Astra there, but that would depend on the outcome of Britain's departure from the European Union.

On Christmas Eve, London and Brussels sealed a deal for tariffless trade, dependent on local content levels, which become stricter on greener vehicles this decade. CEO Carlos Tavares said the company would be able to comply. "We are now deciding where we are going to put those investments and we do not forget... that we have a strong asset, which is a brand called Vauxhall," he said on Tuesday.

"Most probably we will be able to make a decision within a few weeks." Stellantis has promised not to close factories as a result of the merger.