8:11 am, November 27, 2024
The Government has launched a ‘fast-track consultation’ on changes to the ZEV mandate after the business secretary admitted the measures are ‘not working as intended’.
Speaking at the annual SMMT dinner last night (Nov 26), Labour’s Jonathan Reynolds admitted he was ‘profoundly concerned’ about the impact of the policy on the automotive industry.
His comments came just hours after Stellantis announced plans to axe its Vauxhall Plant in Luton, with the sales targets said to be a key factor in the decision.
The closure, which puts 1,100 jobs at risk, forms part of the carmaker’s proposal to consolidate its UK manufacturing of vans to create an all-electric hub at its Ellesmere Port plant in Cheshire, where it is set to invest £50m.
Reynolds says that Labour remains ‘absolutely’ committed to banning the sale of new petrol and diesel cars by 2030 but will now consult on ‘a better way forward’.
‘We have heard you loud and clear on the need for support to make this transition a success,’ he told attendees.
‘I’m going to be frank with you – I don’t believe the policies that we have inherited, and I mean specifically in relation to zero-emission vehicles, are operating today in a way anyone intended them to.’
SMMT chief executive Mike Hawes said the news from Stellantis along with Ford’s recent decision to cut 800 jobs from its UK operations over the next three years showed times were ‘very tough’.
He said: ‘We’ve seen announcements globally of production cuts, profit warnings, job losses and the UK was never going to be immune.
‘A new announcement last weekend and, regrettably, today, are not just a sobering reminder of the challenges the industry faces, but most importantly, of worrying and grave concern for the livelihoods of so many.’
Alongside its annual dinner on Tuesday, the trade body also warned that the pace of the transition to electric vehicles could ‘devastate’ the automotive industry as demand for zero emission vehicles ‘failed to meet ambition’.
The latest consultation on the ZEV mandate is not expected to result in changes to the required percentages, but could include amendments to the options for how manufacturers who miss their targets can avoid being fined.
Despite the announcement, EV champions have urged ministers to stick to the current plans and not side with ‘intense lobbying from legacy auto’.
Quentin Willson, founder of pro-EV group FairCharge, said: ‘Ministers should not dilute the UK’s EV ambitions.
‘Long-term government policy has made us the second-most successful EV market in Europe – an advantage we should strengthen, not weaken.
‘Our ZEV mandate targets are world-leading. Don’t let the intense lobbying from legacy auto ruin them.’
