Car firms threaten to pull production from the UK over EV demands

Car firms threaten to pull production from the UK over EV demands

Labour have been warned reducing electric vehicle targets will risk losing billions in investment from the charging industry.

Several major car makers are lobbying ministers to lower the 22 per cent electric vehicle sales target imposed this year.

Some, including Vauxhall owner Stellantis, have threatened to pull production from the UK entirely over the issue ahead of crunch talks between senior ministers and industry figures this week.

Transport Secretary Louise Haigh has insisted that the ‘mandate will not be weakened’ despite the growing pressure from firms.

Last night she met with Japanese manufacturer Nissan, which reportedly intends to use the wider meeting with ministers to warn that the UK car industry is reaching a ‘crisis point’.

Ms Haigh said afterwards: ‘We’re always open to engaging with industry and I had a very constructive meeting with Nissan, where we discussed how together we can decarbonise our car industry, support jobs and deliver growth.

‘The UK now has the fastest growth of zero emission vehicles of any major European market, and we’re providing more than £2.3 billion to support industry and consumers in making the switch.’

The zero-emissions vehicle (ZEV) mandate, introduced in January by the previous Tory government, means 22 per cent of manufacturers’ car sales this year must be electric, rising to 80 per cent in 2030. Currently, just 18 per cent of UK car sales are electric vehicles.

But figures in the vehicle charging industry have warned that any change to this could result in billions in lost investment, however - leaving ministers caught between the needs of car manufacturers and businesses investing in the electric vehicle revolution.

Vicky Read, CEO of ChargeUK, representing the country’s electric vehicle charging industry, said: ‘These calls to weaken the targets in the ZEV mandate are badly timed and ill thought through.

‘Mess around with those targets and billions of pounds of private investment earmarked for the charge point rollout is in danger of being withdrawn, endangering tens of thousands of jobs, undermining economic growth and undoing the UK’s position as one of the world’s net zero leaders.

‘The government must hold its nerve and use next week’s meeting to signal ongoing support for a policy that is evidently working.’

Nathan Sanders, managing director for distributed energy at SSE, which is investing heavily in installing charge points across the UK, said it was ‘vital the government continues to maintain a supportive policy environment with a strong zero-emission vehicle mandate at its core’ for it to continue to invest.

Dominic Phinn, head of transport at Climate Group, which works with companies on climate action, said: ‘There is absolutely no justification for tinkering with the groundbreaking tool that has put the UK in the fast lane of the global EV transition. Carmakers face a simple choice: scale up EV manufacture now and seize a huge economic opportunity - or be left behind by those who do.’