Business Secretary Jonathan Reynolds told the House of Commons on Wednesday that Stellantis’s decision was “a dark day for Luton”.
It joins Ford in axing UK jobs. Last week, it announced it will cut 800 jobs in the UK over the next three years, partly due to the EV target but also because of increased competition.
Ms Brankin told BBC Radio 4’s Today programme: “The one thing that we really need is government-backed incentives to urgently boost the uptake of electric vehicles.”
She said Ford has invested “significantly” in the production and development of EVs, with “well over” £350m put into electrification in the UK.
“So we kind of need to make it work,” she said.
Both firms have previously raised doubts about their future in the UK because of other factors, separate to EV targets.
Ford closed its Bridgend factory in 2020, axing 1,644 jobs, citing Covid-19 as one of the reasons while Vauxhall’s former owner suggested in 2019 that Brexit threatened its Luton factory.
Meanwhile, some analysts have said a shift towards luxury vehicles and away from cheaper models are also part of the reason for Ford’s problems.
Reynolds blamed the previous government for Stellantis’ Luton closure, saying Labour had “inherited a position of extreme frustration”.
He said there would be a “fast track” consultation of how the EV targets are enforced, but reiterated Labour’s commitment to a 2030 phase-out of new petrol and diesel vehicle sales.
However, shadow business secretary Andrew Griffith said the 2030 target was a “jobs killer” and that Stellantis’ decision was “the direct result of a government policy that is simply unworkable for industry”.
The previous Conservative government moved the deadline for the phase-out from 2030 to 2035, but it kept penalties for non-compliance.
Under the current mandate, a percentage of the cars that companies sell must qualify as zero-emission.
EVs must make up 22% of a company’s car sales and 10% of its van sales this year.
For every car sale outside of that, firms must pay a £15,000 fine.
That target is set to rise to 28% for cars and 16% for vans in 2025. The rules will then get tougher every year ahead of a complete ban of new petrol and diesel car sales.
Labour has said it intends to reinstate the 2030 target as part of its wider commitments to climate change policy, but it will consult on how the “direction of travel” for the policy will work.